SACRAMENTO, May 17 (UPI) -- A closely watched analysis of California's revised budget proposal gave the plan a generally favorable review Monday, but not without some caveats.
The Legislative Analyst's Office, an independent arm of the state Legislature, said Gov. Arnold Schwarzenegger's so-called May revision of the budget includes a brighter picture of California's finances; however the office warned it didn't go far enough in addressing structural problems that can't be overcome simply through economic growth.
The LAO said California's economy has improved since Schwarzenegger's original budget was submitted in January, which should allow the state to issue fewer Prop 57 revenue bonds and, therefore, have additional funds for repayment.
Monday's report concluded the May revision would allow for less-drastic spending cuts in social services, but also places the state in the position of relying less on savings and more on economic growth than the January plan
