Source: Fox News
Summary
California Democrats were aware of a $2 billion budget accounting error for months, but did not publicly disclose it until April. The mistake was related to the state’s public employee retirement system, CalPERS. The error could shrink the projected deficit for the coming fiscal year, but state analysts warn of larger long-term budget problems. The Legislative Analyst’s Office said the administration double-counted some retirement contribution rates, creating a $1.6 billion error. Another miscalculation added $450 million to the total error.
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As expected, the matter has reached another stage.
The state’s budget process has entered a familiar phase, where errors are discovered and corrected. The $2 billion error was known to Democrats for months, but not publicly disclosed. The Legislative Analyst’s Office flagged the issue in February, but it wasn’t reported until April. The governor’s administration has disputed characterizing the issue as an error, saying it’s a revision to better estimate pension-related payments. The lack of public disclosure has drawn scrutiny, as lawmakers had been warning of budget shortfalls while the issue remained internal.
Author: Evan Null
