California's revenue surge might stymie efforts to stabilize finances

May 18, 2011
By Evan Halper and Anthony York, Los Angeles Times

The $6.6-billion of unanticipated revenue may relieve some of the pressure caused by California's huge deficit, perhaps weakening Gov. Jerry Brown's argument for tax extensions.

The cash pouring into state coffers may seem like good news for Gov. Jerry Brown, who this week announced a surprise $6.6-billion surge. But the joke in the Capitol is that he might have served the public better by burying the windfall in the backyard.

Propelled by the higher wages and investment incomes of the rich, the new money could actually stymie meaningful change in California's broken budget system, experts say, leaving state books unbalanced indefinitely.

Full story:
http://articles.latimes.com/2011/may/18/local/la-me-state-budget-20110518