The Legislative Analyst’s Office (LAO) has released the 20th annual edition of the LAO’s Fiscal Outlook – a look at possible State revenue and spending trends over the next five years. The Fiscal Outlook reflects anticipated progress in building budget reserves under the recently approved Proposition 2. Absent new Budget commitments, the LAO estimates the State would end 2015-16 with $4.2 billion in total reserves, $2 billion of which would result from Proposition 2’s new reserve rules. The Fiscal Outlook also discusses choices facing the State in implementing Proposition 2, such as choices about which budgetary and retirement debts to repay with dedicated Proposition 2 funds over the next 15 years. The LAO’s 2015-16 Budget Fiscal Outlook can be accessed here.
