|Budget Issue:||New approach boosts budget revenue $719 million, reduces Prop. 98 guarantee $1.5 billion|
|Finding or Recommendation:||Recommend that Legislature pass law to require more transparency for future administration changes in revenue accruals and, over time, move state budget accounting closer to alignment with generally accepted accounting principles (GAAP). The administration's new accrual approach moves the state budget closer to GAAP in some respects, but we believe the approach was imperfectly executed in the Governor's budget revenue estimates in several ways.|
Please see our office's January 31, 2011 publication, The 2011-12 Budget: The Administration's Revenue Accrual Approach, for more information.