Gov. Jerry Brown finishes signing the the last of of the budget related bills that had been passed by the Legislature earlier in the day, at his Capitol office in in Sacramento, Calif., Wednesday, June 27, 2012. Brown put his signature on California's new $92 billion budget just hours ahead of a signing deadline.
The state budget, signed last week by Gov. Jerry Brown, was crafted with a number of high-stakes assumptions, the L.A. Times points out today.
The future of wealth inheritance and estate tax in the country, for example, seems destined to cause a ripple that will either flood California shores with revenue, or drag the state through the sand of fiscal drought a while longer.
The accuracy of Brown's crystal ball will be tested, and the potential consequences of potential forecast fails will play out in the uncertain future (AKA: Reply hazy).
The Times reports that the Governor partially built the budget on the following big bets:
- That current policy on federal estate tax will change.
- That voters will approve $8 billion in higher taxes in November.
- That Facebook will generate $1.9 billion in tax receipts.
- That defunct redevelopment agencies will provide $900 million more than is currently being anticipated.
Regarding the expectation of the estate tax, the Brown administration calculates a slow start with approximately $45 million the first year, says the Times. By fiscal year 2015-16, they foresee that number growing to around $1.2 billion.
Full Revised Budget Detail: California Governor's Budget 2012-13