Adjusting State Expenditures for COLAs
{"Image DocumentName": "Adjusting State Expenditures for COLAs", "Image ImageDescription": "B-13. \u00a9 2014 School Services of California, Inc. Even though current law does not require COLAs for most state programs, it is unlikely that the Legislature will ignore the need for inflation adjustments for the entire six-year forecast period. The California Consumer Price Index is expected to increase about 2.5% annually through If this adjustment is not provided, state programs would suffer a loss of purchasing power of about 14% by the end of the decade. What happens to the forecast surplus if COLAs are provided to all state programs? If COLAs are provided, the operating surplus falls significantly:  2.1 billion in , peaking at  4.9 billion in , and dropping to  2.3 billion by This outcome would leave little funding for new programs or the restoration of the cuts made during the recession.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}