(SACRAMENTO, Calif.) — California is expected to have a $7 billion budget surplus next year, but lawmakers were urged Wednesday not to spend all of it because a sizable chunk depends on an upcoming decision by the Trump administration as it feuds with state Democratic leaders. A report from the bipartisan Legislative Analyst’s Office says California’s savings account could grow to more than $18 billion by the end of 2021. That’s enough to make it through a typical recession, although the state would likely have to slash public education spending in the event of a downturn, the report said. However, nearly $2 billion of the initial $7 billion projected surplus depends on whether the Trump administration lets California tax organizations that manage the state’s Medicaid plans. California needs permission from the federal government to continue the tax.

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