How can we have a budget if we don't have money?

The Governor has made several statements this past week about the state water bond as well as the state budget. It was most interesting for me to be in Sacramento last Monday and talk to a variety of the representatives of key decision-makers. Overall, the message in Sacramento was very dismal with not much hope for any change in the state budget in the next 3 years. There was good news about the economy recovering and getting stronger all the time -- including over the three year period. However, the "tricks" and "borrowing" that has been going on the past couple of years by the State will limit budget recovery for some time to come.

The LAO (Legislative Analyst's Office) should be releasing their November report this week on state finance. The report has typically been very good and very helpful as it is non-partisan and essentially non-political. The LAO report typically tells all of us the genuine status of the state budget. We will see.