(June 30, 2003) -- As CA careened toward a midnight budget deadline with a projected $30+ billion deficit (spending exceeding revenue), the state's non-partisan Legislative Analyst's Office (LAO) said a budget bill (AB 1769) being advanced by CA Democrats, carried by Assembly Budget Chair Jenny Oropeza (D, LB-Carson), would produce black ink now...but with $10.2 billion in red ink in FY 04-05 that will increase in subsequent years.

Responding to an inquiry from Senate Republican Leader Jim Brulte, the LAO's office said in a memorandum (posted verbatim by LBReport.com below), the bill would produce black ink in FY 02-03 and 03-04 ($3.4 billion and $1.4 billion, respectively) while creating a double-digit deficit in FY 04-05 ($10.2 billion) that would hit $11.1 billion in FY 07-08.

On June 25, AB 1769 failed to garner the required 2/3 vote in the CA Senate (24 yes, 14 no..with LB Sen. Betty Karnette voting yes). Republicans have opposed Democrat backed budget bills by refusing to vote for increased taxes. Democrats say making further cuts would produce intolerable service cuts. Reconsideration was granted, meaning AB 1769 is still alive as arguments continue in the state capital.

On June 30, Senator Brulte cited the LAO memo on the Senate floor. His remarks drew no perceptible response.

The Legislative Analyst's Office (LAO), which is overseen by the 16-member bipartisan Joint Legislative Budget Committee (JLBC), reviews and analyzes the operations and finances of state government and is a staff resource to all legislators.

To view the Legislative Analyst's Office memo in pdf form, click Legislative Analyst's Office memo re Budget Bill AB 1769