CalMatters: California’s budget whiplash showed the pitfalls of forecasting revenue ...Middle East

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Seventeen months ago, while unveiling a much-revised 2022-23 state budget, Gov. Gavin Newsom bragged of having a $97.5 billion surplus to expand health care, social equity and educational programs. “No other state in American history has ever experienced a surplus as large as this,” Newsom said as he unveiled a $300-plus billion budget that the Legislature eagerly adopted with a few tweaks. The core of the eye-popping surplus was a projected $54.8 billion increase in revenues, mostly personal income taxes, over what Newsom had estimated just five months earlier. With the economic effects of the COVID-19 pandemic fading, the state was reaping a bumper crop of taxes and Newsom’s revised budget

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