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California Governor Jerry Brown at the State Capitol in Sacramento, California on October 27, 2011.
The nonpartisan Legislative Analyst’s Office just released its updated economic forecast report for California. According to the report California’s economy is on it’s way to recovery, but persistent joblessness remains a problem and the housing market is still in trouble. The report points out that although some sectors of the economy are ailing corporate profits are up and the tech industry is booming. Tax forecasts for the state are slightly better than the LAO’s last report. Then they said the governor’s tax forecasts was off by $6.8 billion, they’re now saying tax revenues will be $6.5 billion dollars less than projections from the governor’s office.
According to the report, if their numbers hold it will trigger more big cuts to the state budget. The report also includes revenue that will be generated by a possible initial public offering of stock by Facebook, Inc. We’ll crunch the numbers with KPCC’s State Capital Reporter, Julie Small.
Julie Small, KPCC's State Capital Reporter