A state surplus could lead to more money for local schools.
Due to climbing revenues and increased tax collections, California will have a $31 billion budget surplus next year, according to a forecast from the state’s independent Legislative Analyst’s Office.
The surplus could also lead to tax cuts, increased infrastructure spending or taxpayers rebates.
The state constitution requires 40% of state tax collections be spent on public education each year, which could lead to a $11 billion increase for public schools and community colleges.
California businesses reported a $216.8 billion in taxable sales from April through June — a 38.8% increase over the same period in 2020.
According to the Associated Press, during the first three months of this budget year, California tax collections are more than $10 billion ahead of projections. The LAO predicts that by June of 2022, California will have collected $28 billion more in taxes and transfers than they had expected.
Retail sales have also experienced double digit-growth this year and stock prices have doubled from their low point last spring at the start of the pandemic.