California Black Media

LAO Releases Multi-Year Outlook: Modest Budget Deficits to Persist

The state budget deficit is projected to increase, which will require the Governor and Legislature to make more budget cuts over the next few years, California’s non-partisan Legislature Analyst’s Office (LAO) stated in a report last week. According to the LAO’s multiyear budget report that makes forecasts about the state’s general fund through the 2027-28 fiscal year, the state’s budget problem is $7 billion higher than expected due to lower revenue and spending estimates.

Published

2 months ago

June 11, 2024

Oakland Post

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By California Black Media

According to the LAO’s multiyear budget report that makes forecasts about the state’s general fund through the 2027-28 fiscal year, the state’s budget problem is $7 billion higher than expected due to lower revenue and spending estimates.

“Under our office’s revenue and spending projections, and assuming the Governor’s May Revision policies are adopted, the budget problem for this year is $7 billion larger,” the report reads. “Put another way, the Legislature would need to take $7 billion in additional budget actions to balance the budget.”

This shortfall requires the Governor to reduce government spending by an additional $7 billion to balance the state’s deficit. However, if the legislature does approve the governor’s May Revisions the budget problems will carry over into the 2025-2026 fiscal year, increasing the existing budget deficit by nearly $10 billion.

California’s budget deficit could be as high as $73 billion, requiring the Legislature to consider harsh budget buts that can help the state economy recover long-term. However, the LAO’s spending estimates are lower than that of the state’s Department of Finance.

“The main reason that our estimates of the state’s operating deficits are slightly smaller than the administration’s is that our estimate of General Fund spending is lower than the administration’s estimates,” stated the LAO in the multiyear budget report.

The LAO’s estimates exclude spending on schools and community colleges, and lower estimated expenditures for Health and Human Services (HHS) programs. Based on the LAO’s estimates, Health programs grow annually by an average of 5.1 percent compared to the Newsom Administration’s estimated 8 percent.

“Our office has little insight into the components of, or assumptions underlying, the administration’s projections in HHS. As a result, we cannot identify the precise source of these differences—or the comparative reliability of our respective estimates — with confidence,” the LAO report stated.

Given the projections, the LAO recommends that the Legislature maintain an overall structure similar to the Governor’s May revisions in the final budget package.

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The printed Weekly Edition of the Oakland Post: Week of July 24 – 30, 2024

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California Black Media

New California Laws Require High School Classes on Drug Education, Financial Literacy and Ethnic Studies

Last week, California became the 26th state to require high school seniors to pass courses focused on finance literacy, coming behind recently added ethnic studies prerequisite and a health class requirement focused on the dangers of fentanyl use. The senior class of 2031 will be the first group of students to take the mandatory financial literacy course. California school districts are required to implement Assembly Bill 2927, authored by Assemblymember Kevin McCarty (D-Sacramento), at the beginning of the 2027-2028 academic year.

Published

1 week ago

July 19, 2024

Oakland Post

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By Bo Tefu

California Black Media

The senior class of 2031 will be the first group of students to take the mandatory financial literacy course. California school districts are required to implement Assembly Bill 2927, authored by Assemblymember Kevin McCarty (D-Sacramento), at the beginning of the 2027-2028 academic year.

The bill works hand-in-hand with newly approved Assembly Bill 2429, authored by Assemblymember David Alvarez (D-San Diego). That law requires students to take health classes that discuss the dangers of fentanyl use and illegal drugs commencing in the 2026-2027 school year.

Both bills require high school seniors to complete the designated coursework during any semester between the ninth and 12th grades. High school students in charter schools are also required to complete the state-mandated coursework. Under this law, local educational agencies will impose the required courses using state-mandated local programs.

McCarty said that the financial literacy classes will prepare students for the future and empower them to make smart money decisions throughout life.

“It’s such an important life skill,” he said. “The stressors that young people face today — especially student loans, renting, buying a house, credit cards all those things are so critically important. And if you fall behind, the consequences have a serious impact later in life.”

Unlike the bill on financial literacy that imposes classes as a graduation requirement, the bill on health education allows school districts to choose if health classes are a graduation prerequisite.

Alvarez said that health education can help address the state’s fentanyl epidemic, specifically among the youth.

“I think it’s important… that we share facts with young people, especially these days as they rely more and more on social media with misinformation,” said Alvarez.

“There’s still no better-trusted source than our schools for students and for families to receive the information that they need in order to make better decisions and better choices,” he continued.

Gov. Gavin Newsom said the state needs to help prepare young people in a statement backing the bills.

“Saving for the future, making investments, and spending wisely are lifelong skills that young adults need to learn before they start their careers, not after,” the Governor said in statement backing the education bills.

Starting in the 2025-2026 academic year, the state will also require high school seniors to take an additional one-semester course on ethnic studies.