That money was not reported to the Legislative Analyst's Office until the afternoon of June 6 the same day voters approved Proposition 30. Finance spokesman H.D. Palmer said his department found the money as part of an annual review that assigns revenues to past budget years.
The legislative analyst's fiscal forecast serves as the unofficial kickoff to the budget season. Brown will set things in motion when he releases his 2013-14 budget in January.
Taylor hinted Wednesday the governor may believe he faces no deficit at all if he uses a higher estimate of redevelopment funds and cap-and-trade revenues.
As state revenues increase, K-12 schools and community colleges will receive more money under a funding formula in the state constitution. Schools may use the money to hire additional teachers, increase salaries or restore subject matter that had been cut.
But Taylor said the state's finances are not yet strong enough to enable similar expansion in public programs such as Medi-Cal, universities and in-home care all of which lack the mandated spending increases that K-14 schools have.
"I think it's a little bit of a tale of two budgets there," Taylor said.
As lawmakers and Brown enjoy an influx in revenues and possibly surpluses in years to come, the analyst's office offered advice that mirrored the wisdom commonly dispensed to consumers by personal finance experts. It suggested that state leaders build an emergency reserve, pay off debt, devote more cash to retirement costs and be very selective about buying back programs.
Senate President Pro Tem Darrell Steinberg, DSacramento, told The Bee's editorial board Wednesday that he wants to do all of that, though he didn't commit to how he would divvy up the budget.
"Obviously we're not going to be able to reinvest dramatically in year one and year two or in year three," Steinberg said. "Obviously we're not going to be able to make up for all the losses that have occurred in education, higher education, public safety and health and human services in the short run."
But Steinberg added that he wants to pursue a "medium- to long-term investment plan" that would devote funds to a rainy-day fund, program restorations and paying off debt.
The legislative analyst's forecast relies on a steady economic recovery in California. Its projections show the state unemployment rate dropping from 10.6 percent in 2012 to 6.7 percent in 2017. It also assumes that personal income will grow by between 4.7 percent and 5.8 percent annually.
Taylor warned that the state and national economy could suffer if federal leaders do not avert the so-called fiscal cliff in which taxes increase and spending cuts would occur. His projections assume that President Barack Obama and Congress will reach a deal that avoids the most severe impacts.