Blast from the Past

Economic Growth Turns State Deficit Into Surplus

“A brighter economic picture has turned an expected $1.5 billion deficit into a projected $200 million surplus. Republican Gov. George Deukmejian proposed a $30.3 billion balanced budget for 1984-85 with no general tax increases. He is calling for [a] 30 percent boost in funding for [the] University of California, [and a] 20 percent increase for California State University.”

– The Associated Press, January 22, 1984. In “California’s Tax Machine: A History of Taxing ad Spending in the Golden State,” CalTax’s David R. Doerr notes that the budget approved months later was slightly larger: “With an improving economy fueling a bonanza of revenue, a $30.9 billion 1984-85 budget was approved prior to July 1 without the need for a tax increase. The budget had jumped an eye-popping 16 percent over the prior year.”