California will end its current fiscal year with almost $3 billion, the second period that the most-populous U.S. state will have a positive balance, as revenue and transfers outpace expenses.
The state also is projected to end fiscal 2015 with $2.1 billion in reserves, while bond spending is forecast to decline 53 percent, Legislative Analyst Mac Taylor said in a report Monday.
“Similar to the 2013-14 budget, the 2014-15 spending plan makes targeted augmentations in a few areas while paying down several billion dollars in key liabilities,” Taylor said in the report from the nonpartisan office.
California Governor Jerry Brown, a 76-year-old Democrat running for a fourth term, signed a record $156.3 billion spending plan in June. A surge in revenue, mostly from capital gains and temporary income- and sales-tax increases, has taken the state from a $25 billion deficit three years ago to its record surplus.
The state’s credit rating was raised in June to the highest level since 2001 by Moody’s Investors Service. Moody’s upgrade to Aa3 from A1 puts California two steps higher than Standard & Poor’s and Fitch Ratings, which last year upgraded California to A, sixth-highest.
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