November 19, 2010

Budget Update

Both the State Controller and Department of Finance (DOF) have reported October State General Fund revenues exceeding the October estimates in the just passed budget.

While one month does not make a year’s revenue increase, the increased revenue indicates a slightly stronger economy than estimated by the Legislative Analyst’s Office (LAO) in their November report.

If state revenues continue to exceed the budget estimates, this would not mean that the state is out of the dire fiscal straights indicated by the LAO.  There will still need to be significant new revenues, expenditure reductions or other actions taken to balance the 2010-11 and 2011-12 state budgets. 

I am working and will continue to work with legislative staff, DOF staff and others to find new revenues to protect K-12 education funding in the 2011-12, and future state budgets.

~Dave Walrath