This is good news for the budget:
State lawmakers, particularly Senate leader Darrell Steinberg (D-Sacramento), have been bullish about California’s recent spate of good news regarding tax collections. For several months, the state has collected more in taxes than expected, with the current haul about $2 billion more than forecast.
But just because the state has collected $2 billion more in taxes doesn’t mean the state’s estimated $20- billion deficit has shrunk to $18 billion (LA Times)
Of course, because of Prop 98, some of that cash will go to schools. An altogether positive development. Mac Taylor, the new legislative analyst who is turning out to be decidedly less nun and more hawk, puts it in a different light:
We just want to make sure people are going into this with their eyes open,” Taylor said. “You can’t attribute all of that new revenue to directly addressing the budget problem.”