The governor is planning on the state getting an extra $7 billion a year if voters approve his tax proposal in November. But a report from the Legislative Analyst's Office puts that number at just under $5 billion in its first year - then $5.5 billion in the years that follow. H.D. Palmer with Brown's Department of Finance plays down the disparity and says the two forecasts aren't far apart.
LAOTAX2A / Palmer: "We, working off the 2010 tax data, are projecting and seeing higher capital gains and higher wages from the higher income portion of the California taxpaying public than the LAO is."
But if the LAO's forecast turns out to be more accurate, and the tax measure passes, California might be in for deeper cuts than the governor's new budget proposal calls for.
