Twice each year, once in January and again in May, Gov. Jerry Brown warns Californians that the economic prosperity their state has enjoyed in recent years won’t last forever.
Brown attaches his admonishments to the budgets he proposes to the Legislature – the initial one in January and a revised version four months later.
Brown’s latest, issued in May, cited uncertainty about turmoil in the national government, urged legislature to “plan for and save for tougher budget times ahead,” and added: “By the time the budget is enacted in June, the economy will have finished its eighth year of expansion – only two years shorter than the longest recovery since World War II. A recession at some point is inevitable.”
A new report from the federal Bureau of Economic Analysis, however, hints that the downturn already may have started.
The bureau releases state-by-state economic data each quarter, and its reports for the first and second quarters of 2017 are not good news for California.
Last year was a very good one for the state’ economy. The 3.3 percent gain in economic output in 2016 was more than double that of the nation and one of the highest of any state.