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California’s Cash Reserves Could Rise to Record $26B
A new report by the nonpartisan Legislative Analyst’s Office shows that California’s budget may rise to a record $26 billion in cash reserves by the summer of 2021. The authors of the report say California’s budget continues to be in a good position following more than a decade of economic expansion, coupled with deliberate legislative action to put the budget on better footing.
The group estimates the state’s legislature will have a $7 billion surplus available to allocate in the upcoming budget process. An $18.3 billion balance will build in the state’s rainy-day fund by the end of 2020-21, as well as another $900 million that will be earmarked to assist social services programs should recession pressures mount.
“The budget picture is strong,” Legislative Analyst Gabriel Petek told the Los Angeles Times. “But that doesn’t mean there aren’t caveats to that.”
The Legislative Analyst’s Office report assumes the first signs of a recession could appear in early 2021.
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- ◦Economy
