California’s nonpartisan legislative analyst says Gov. Jerry Brown’s plan to close the state’s $15.7 billion deficit is reasonable, although it might overstate the potential revenue from defunct redevelopment agencies.
The analyst’s office warned in a report Friday that there are many challenges in forecasting tax revenue for the fiscal year that begins July 1. It says state leaders should not be surprised if it is several billion dollars lower or higher than projected.
The report says the administration may be overstating how much property tax revenue the state will generate after eliminating local redevelopment agencies. The shortfall could add $900 million to the deficit.
Brown hopes voters approve temporary tax increases, which he says would generate $8.5 billion. Tax revenue from sales of Facebook stock could generate another $2.1 billion.