Analyst releases new report reviewing California budget

California reached an unfortunate budget benchmark in June -- for the fourth consecutive fiscal year, the state ended with a deficit.

Now the question is whether California can break that streak with the new budget signed into law by Gov. Jerry Brown.

The Legislative Analyst's Office released a new report on Thursday reviewing much of the state's spending plan.

Brown's budget leaves a nearly $1-billion cushion in case tax revenue dips or the state spends more than expected.

Of course, that won't come close to covering the gap if voters in November reject Brown's push for tax hikes. The governor's plan would raise $8.5 billion by raising the sales tax by a quarter of a cent and increasing levies on the wealthiest.

Without the taxes, almost $5.5 billion would be cut from public schools.  

Via LA Times