For the first time in over a decade, California is slated to post an $851 million budget surplus as a result of voter-approved tax increases.
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Greater revenue than anticipated will come in from eliminating redevelopment agencies than predicted by the Legislative Analyst’s Office (LAO). The LAO predicted a budget shortfall of $1.9 billion in November.
California Governor Jerry Brown vowed to avoid the fiscal mess previous governors struggled with and won re-election on that promise.
The surplus is by no means guaranteed. Brown said actions on the federal deficit
, a slowdown in the economic recovery, or increasing healthcare costs could derail the projection.