California LAO forecasts $7 billion surplus for fiscal year

The state treasurer’s office through successive treasurers ... and now Treasurer Fiona Ma during the Gov. Gavin Newsom Administration, has steadily refinanced the state’s debt during the era of low interest rates.

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The California Legislative Analyst estimates the state will have a $7 billion surplus in the upcoming fiscal year if it maintains spending at current levels, but cautioned the Legislature against thinking it has that much to spend.

The LAO, which provides financial and budgetary guidance for the Legislature, released the report Nov. 20 that outlines the state’s economic condition annually before the governor’s January budget release.

“The report paints a fairly positive view of the state,” Gabriel Petek, the state’s legislative analyst, said during a media briefing. “We are estimating at the end of the 2020-21 budget year, the state will have $7 billion in discretionary reserves, but that assumes the current laws and policies remain in place.”

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