California's lawmakers should have a surplus next year. Will they spend it or save it?
The state budget is in good shape to weather a moderate recession, and lawmakers should be able to sock away more money in reserves next year, according to projections the nonpartisan Legislative Analysts Office issued Wednesday.
The LAOs outlook shows the state would finish its 2018-19 budget year with more than $19 billion in reserves assuming lawmakers and Gov. Jerry Brown dont make any more spending commitments. About $11 billion is obligated for the states rainy-day fund.
Lawmakers could spend about $7.5 billion of the surplus, although analysts recommend that they save it to prepare for a recession.
The Legislature also probably will have flexibility to spend several billion dollars in money thats set aside for kindergarten through community college education, the report says.
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