LAO Releases Analysis of May Revision
By David Walrath
The Legislative Analyst’s Office (LAO) has released their analysis of the Governor’s May Revision. While generally concurring with the revenue and expenditure provisions contained in the May Revision, the Analyst recommends rejection of the Governor’s proposal regarding bonding the State Lottery.
Regarding Proposition 98, the LAO continues to recommend a mid-year reduction to the absolute Proposition 98 minimum, but make the reduction by further use of Public Transportation Account funds and recovery of unexpended before and after school (Proposition 49) funds and the primary means to reduce the current year guarantee. The LAO then proposes to a number of other changes for the budget year including deferring the Quality Education Investment Act and the state mandate reimbursement funding from the settle-up account. The main outline of the Analyst’s proposals is the same as presented in February.
Starting this week and continuing through next week, the Senate and Assembly Budget Subcommittees will be hearing the May Revision issues before finishing their work by May 30th.
