First take by the LAO…

…on the budget.

The Legislative Analysts’ Office came out today with its first review of the Governor’s budget. It didn’t have a major concern with the numbers, but with the decisions.

The major beef: Not all state programs are equal, and so a 10% cut does not recognize the priority of the programs, or the impact of the cuts on the program’s effectiveness. The LAO also calls for additional revenues, not just cuts. She also casts a skeptical eye on the Governor’s “reforms.”

On the analysis section, the section in entitled, “Economic and Revenue Forecasts Appear Reasonable, but Some Downside Risk.” Even though the LAO had a better projection just a few weeks ago, they are ready to predict the worst. Very LAO. Expect something similar with the analysis on health reform: it can pencil out, but here’s the risks that it won’t. Nothing definitive, but pointing to “downside risks.”

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