Ken Kapphahn, the state’s leading expert on Proposition 98 and the Legislative Analyst’s Office’s (LAO) Principal Fiscal and Policy Analyst, explains the different revenue assumptions and their impact on State Budget negotiations and Proposition 98. The interview covers the varying assumptions between Governor Gavin Newsom’s May Revision and the legislative budget package adopted by the Senate and Assembly budget committees on May 30, 2024. Finally, he discusses the protracted operating deficit in Proposition 98 and what the state will need to do to eradicate it.