The state's independent budget analyst is predicting California revenues will be $2.5 billion more than Governor Jerry Brown is forecasting in his latest budget proposal.
Legislative Analyst Mac Talor says the state will collect more from capital gains taxes because of the stock market's performance. The review comes three days after Brown released a record spending plan that allocates most new revenue to Medi-Cal costs.
Today's report could give some Democrats a reason to push more spending.
Senator Steinberg says the LAO has a "respected track record" and he'll take their numbers seriously.