The Legislative Analyst's Office (LAO) has released an initial review of last Friday's May Revise proposal.* As we noted in our summary of that proposal in this blog, the governor's spending on UC is unchanged from the January budget proposal. And the budget increases the net total reserve (regular reserve which goes down plus rainy day fund which goes up). The LAO opines that this increase in net total reserves is prudent. Whether the legislature will agree with the governor and LAO in the remaining weeks before the budget must be passed in mid-June is less clear. But typically, the May Revise proposal and the final budget deal are pretty close together. We'll just have to be patient to see what happens. And how can you argue with Patience and Prudence?
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