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Toni Atkins

Independent analyst forecasts rosy finances for California

California could end fiscal 2016 with nearly $12 billion in its rainy day fund if the state's economic recovery continues and lawmakers don't commit to major spending increases, California's independent legislative analyst said Wednesday.

After several years of deep spending cuts and voter-approved temporary sales and income taxes, California's budget is better prepared for an economic downturn than it has been in decades, legislative analyst Mac Taylor said in his annual fiscal forecast.

His report projects that California will end the current fiscal year in June $3.6 billion above the assumption the Legislature and Gov. Jerry Brown relied on in crafting the current budget....