The state Legislative Analyst's Office issued a report saying California is projected to finish the current fiscal year in June 2014 with a surplus of $2.4 billion, more than twice the $1.1 billion surplus previously projected, the Los Angeles Times reported.
"We now find that California's state budget situation is even more promising than we projected one year ago," the report said. "The state's budgetary condition is stronger than at any point in the past decade."
The report said increased tax revenues suggest the state could taken in $27.1 billion more than previously projected by 2020, and the added revenue will help compensate for the expiration in 2018 of temporary taxes that took effect Jan. 1 after California voters approved Proposition 30 in November 2012.
The analyst's report noted future surpluses will depend on consistent growth in financial markets, and state finances could take a hit if budget fights in Washington result in more government shutdowns.
Assembly Speaker John Perez, a Democrat, said in a statement he will try to get a referendum on the 2014 ballot to mandate that the state maintain regular contributions to a rainy day fund.
The state has had a rainy day fund since 2004, but governors are permitted to waive contributions to it.