LAO Points to the Obvious

A new publication from the Legislative Analyst's Office (LAO) states what should be obvious:

The budget outlook is adversely affected by the current economic downturn and drop in financial markets.

We are better off than we would have been because of the past buildup of reserves.

Putting together the governor's May revise budget proposal must be done in a climate of uncertainty.

You can read the report at https://lao.ca.gov/Publications/Report/4203

Just a note that if you go back to the state budget crisis of the dot-com bust, you will find that the state actually had a significant reserve, even though it was not termed a "rainy day" fund. Even though spending was ramped-up during the bubble phase, significant unspent funds accumulated in the state's general fund. But the downturn quickly dissipated them.