By Orange County Register Editorial in The Orange County Register

February 9, 2016

It’s time to cut and save at all levels of government. The reason: the economy may be slowing. A Feb. 3 report by the state’s nonpartisan Legislative Analyst’s Office found, “December and January income tax collections came in modestly short of projections.” And for fiscal year 2015-16, which ends June 30, “to date, based on this preliminary data, the state’s income taxes are a combined $167 million under the revised administration projections. … [T]he possibility now exists for some revenue deterioration between now and the May Revision.”

It’s not a $20 billion crash in revenues, such as occurred during the Great Recession, but a caution light about spending by the state. Local governments also should take note because large amounts of their funding come from the state.

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