Fiscal Report
Public Education's Point of Reference for Making Educated Decisions

LAO Warns Budget Estimates Optimistic — An Interview

The uncertainty of the economy and the blind spot created by extending the tax filing deadline to October makes projecting state General Fund revenues particularly complicated this year. As Governor Gavin Newsom and the Legislature negotiate a final agreement for the 2023-24 State Budget, the revenue assumptions they use will be important.

Just three days following the release of the May Revision, the Legislative Analyst’s Office (LAO) released its initial impressions on the Governor’s revised budget proposals with a warning that its revenue estimates are likely too optimistic.

We are joined today by Ken Kapphahn, Principal Fiscal and Policy Analyst at the LAO, to discuss the differences between the Governor’s latest revenue estimates and those of the LAO and what this can mean for Proposition 98.