Sen. Dodd: LAO Report Shows Strong Fiscal Outlook

SACRAMENTO – Sen. Bill Dodd, D-Napa, issued the following statement today in response to a California Legislative Analyst Office report forecasting a $51 billion budget surplus in 2022 that will allow the state to build on its rainy-day fund while investing in critical areas such as reducing the effects of climate-driven wildfires and drought.

“California is once again in a strong financial position due to our thoughtful budgeting, and we must continue to be responsible stewards of our resources,” Sen. Dodd said. “The surplus is both an opportunity and responsibility. Making sure we have funds set aside for unseen expenses is critical. At the same time, we must build on investments such as responding to climate change, which has triggered record wildfires and drought. We also must continue to support other key services as well as our pandemic recovery. I look forward to working with legislative leaders and Gov. Gavin Newsom next year as we draft what must be a prudent and visionary budget.”

The LAO report issued today forecasts increased general fund revenues of $51 billion for the upcoming 2021-22 budget year. Of that amount, $31 billion will be available for discretionary purposes. It follows last year’s $75 billion surplus driven by revenues from California’s high-earning individuals and businesses.

Link to LAO report: https://lao.ca.gov/Budget?year=2022&subjectArea=outlook

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Senator Bill Dodd represents the 3rd Senate District, which includes all or portions of Napa, Solano, Yolo, Sonoma, Contra Costa, and Sacramento counties. You can learn more about the district and Senator Dodd at www.sen.ca.gov/dodd.