Not long ago, California hit rock bottom…
Schwarzenegger: "The $42 billion
deficit is a rock upon our chest that we cannot breathe until we
get it off."
That's former Governor Arnold Schwarzenegger nearly four years ago. Now, says Legislative Analyst Mac Taylor…
Taylor: "For the first time since
2001, we actually show us being in the black."
He's projecting a $1 billion surplus for fiscal year 2014-15 - and much larger ones after that. But first, California faces one final deficit: a $1.9 billion shortfall over the next year-and-a-half. Taylor says lawmakers should resist any pressure to restore previous budget cuts.
Taylor: "We could slow down or
turn down in the future at any time. And we don't want to be
in the same situation we were in, in the past 10-15 years."
He's urging the legislature to create a budget reserve, deal with unfunded pension liabilities and pay down the state's debt.