California Budget Surplus for Next Year Seen at $31 Billion

California will likely have a budget surplus of $31 billion for its next fiscal year, according to the state’s nonpartisan adviser, which would mark the second straight year of staggering excess as revenue continues to exceed expectations.

The surplus for the year beginning in July, as estimated by the Legislative Analyst’s Office in a report Wednesday, gives Governor Gavin Newsom even more opportunity to press his priorities in the budget he will present to the legislature in January. This year, the surplus was $75.7 billion.

Reserves will reach about 10% of general fund revenue, still below the pre‑pandemic level ...