California’s Evolving Fiscal Outlook
Last week, the Legislative Analyst’s Office reported that the COVID-19 emergency will generate significant economic uncertainty in the state. That said, California has a nearly $20 billion rainy-day fund and significant budget surpluses in the current fiscal year that can be tapped for the short-term. Read the full short, but helpful
One of the many impacts the pandemic will have on state revenue projections is on state gas tax revenues as well as other transportation funding sources, such as diesel excise and sales taxes vital to transit capital improvements and operations. The longer the stay-at-home order is in place, the greater the impact on revenue collection. Firms providing transportation-related services should be aware of the significant fiscal impact this pandemic will have on their clients' project funding streams.