Analyst: California budget 'in remarkably good shape'

A California legislative analyst says California's budget is in "remarkably good shape" as fiscally conservative Gov. Brown prepares to hand off to governor-elect and fellow Democrat Gavin Newsom.

The analyst says Newsom and the Legislature will have nearly $15 billion to allocate next year, but it warns that the state might face budget cuts during any future recession if lawmakers don't commit that entire surplus to California's rainy day funds.

Legislature appointee Mac Taylor who wrote the analysis says "it’s difficult to overstate how good the budget's condition is today. By historical standards, this surplus is extraordinary."

The analyst's longer-term outlook also is rosy, projecting annual surpluses averaging more than $4 billion annually if the economy continues to grow.