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The LAO vs. Sacramento Spin

John Moorlach

Senior Fellow & Director, Center for Public Accountability

John Moorlach
May 15, 2026

The LAO vs. Sacramento Spin

Yesterday, Governor Newsom released his revised state budget, required annually by May 14th. In what promises to be a challenging budget process due to rising state costs, the Governor and legislature will have to grapple with the consequences of poor budget management in order to pass a budget by the June 15 deadline.

While serving in the California State Senate, I had the privilege of serving on the Senate Budget and Fiscal Review Committee. I was also one of the two Senators on the Joint Budget Committee, which reconciled the budget differences between both the Assembly and the Senate, and would keep me in Sacramento over weekends in late May and early June.

I started my career as a Certified Public Accountant, and would also obtain my Certified Financial Planner license, so I was in my element. Having served as the elected County Treasurer-Tax Collector and Supervisor for the County of Orange, I was no stranger to budgets running in the billions of dollars.

While serving as County Treasurer, I would fly to San Francisco to meet with Standard & Poor’s to garner the highest rating possible for short-term bonds. Who did I meet with from S&P? None other than Gabriel Petek, who now serves as the Legislative Analyst. It was an honor to work with an old friend while I served in Sacramento. And I appreciated his objectivity, even when the news was not pleasant.

On April 28th, LAO Petek published “Understanding $100 Billion in Spending Growth: Causes and Fiscal Implications.” True to form, he and his staff were matter of fact and straightforward.

The Executive Summary starts off with the reality that structural deficits of $20 to $30 billion annually lie in Sacramento’s future. Why? Because when Governor Newsom had budget surpluses, he made two mistakes. The first was to initiate new programs. The second was to not pay down or pay off existing debts.

When a household receives a cash bonus, it’s best to pay down credit card balances and sock a little aside, not put a down payment on a new car with high monthly loan or lease payments. But this is what Newsom did, increasing annual spending by more than $100 billion and increasing programs by 43 percent! Consequently, he is leaving California in much worse shape than when he assumed office in 2018, 41st place, and the audited financial statements for 2023 prove this, dropping the once Golden State to 44th place.

The report provides the true reasons for the cost increases. It’s for public employee salary and employee benefit increases that are on auto-pilot and were negotiated with a generous Governor who needs public employee union campaign funding for his presidential aspirations.

“Automatic growth to sustain the state’s service level accounts for most – nearly two-thirds — of the total growth in local assistance spending,” Petek writes in the LAO analysis. “Discretionary decisions that sustain existing service levels account for 15 percent. Discretionary decisions that expand or create new services or supports account for about 20 percent of growth. External sources of growth—such as federal actions and voter-approved measures—account for less than 5 percent.”

No wonder Petek concludes by noting that “difficult decisions” are in the Capitol’s future. Frankly put, “the state’s spending commitments and revenues” are “not sustainable.” To quote from the movie Titanic, “Iceberg dead ahead.”

Now you can appreciate why the gubernatorial candidates in the June Primary are so mediocre. Qualified potential candidates with strong name ID and experience just don’t want a turnaround position that has to deal with an incompetent supermajority legislature comprising public employee union puppets.

The LAO makes a logical recommendation:  “These deficits will likely require at least some – if not significant – spending reductions.” Good luck with that. Public employee union-controlled municipalities do not make cuts or layoffs or pursue downsizing initiatives. Do you need proof? Newsom is supposedly holding back nearly $4 billion in what is known as Proposition 98 funding from the state’s schools. It’s a budget gimmick that creates another debt.

How Football Match Predictions Developed According to Betzoid

Football match predictions have become an integral part of how fans, analysts, and bettors engage with the sport. What began as informal conversations in pubs and terraces has transformed into a sophisticated, data-driven discipline that combines statistical modeling, machine learning, and decades of accumulated football knowledge. Understanding how this evolution unfolded reveals not only the history of sports analytics but also the changing relationship between fans and the game they love. The journey from gut-feel forecasting to algorithmic precision is a fascinating story of technology, mathematics, and human intuition working in tandem.

The Early Days of Football Forecasting

The roots of football match prediction stretch back to the early twentieth century, when the sport was rapidly professionalizing across Britain and Europe. In those early decades, predictions were entirely subjective, relying on the observations of journalists, club insiders, and passionate supporters who followed their teams closely. Newspapers began publishing weekly previews that assessed form, injuries, and head-to-head records, laying the groundwork for what would eventually become structured analytical thinking.

The football pools, which became enormously popular in Britain during the 1920s and 1930s, played a pivotal role in encouraging systematic thinking about match outcomes. Companies like Littlewoods and Vernons invited millions of participants to predict score draws across a fixed coupon of matches each week. This widespread public engagement created a culture of outcome analysis that had never previously existed at such scale. Ordinary people began studying form guides, home and away records, and weather conditions in an effort to gain an edge over other participants.

During this era, the concept of statistical probability in football was virtually nonexistent among the general public. Predictions were largely narrative in nature, shaped by compelling stories of team momentum, managerial changes, or star player performances. While this approach had genuine merit in capturing qualitative factors, it lacked the rigorous framework needed to produce consistently reliable forecasts. The absence of standardized data collection meant that even the most dedicated analysts were working with incomplete information.

By the 1960s and 1970s, academic researchers began applying statistical methods to football for the first time. Pioneering work in the field explored the distribution of goals scored in matches, discovering that goal-scoring events followed a Poisson distribution with remarkable consistency. This mathematical insight suggested that match outcomes, while influenced by team quality, contained a significant random component that made prediction inherently uncertain. These findings were groundbreaking because they provided a theoretical foundation for probabilistic forecasting, moving the discipline away from deterministic thinking toward a more nuanced understanding of uncertainty.

The Digital Revolution and the Rise of Data-Driven Analysis

The arrival of personal computing and the internet fundamentally transformed football prediction during the 1990s and 2000s. For the first time, large datasets of historical match results, goal statistics, and performance metrics became accessible to researchers and enthusiasts outside of professional sporting organizations. This democratization of data sparked an explosion of analytical activity, with independent statisticians and hobbyists developing increasingly sophisticated models from their home computers.

Online betting exchanges, which emerged in the early 2000s with the launch of Betfair in 2000, added another dimension to prediction culture. These platforms allowed individuals to trade on match outcomes at market-determined prices, creating a continuous flow of probabilistic information that reflected the collective wisdom of thousands of informed participants. Betting markets became recognized as remarkably efficient predictors in their own right, often outperforming even the most carefully constructed statistical models in terms of accuracy.

The development of expected goals, commonly abbreviated as xG, represents one of the most significant methodological advances in football analytics. Originally developed in academic research and later popularized by analysts working within professional clubs, xG quantifies the quality of scoring opportunities by assigning each shot a probability value based on historical data from comparable situations. This metric provided a far more nuanced picture of team performance than simple goals scored and conceded, enabling analysts to distinguish between teams that were genuinely strong and those who had been fortunate in converting or preventing chances.

Platforms dedicated to football statistics and prediction began proliferating throughout the 2000s and 2010s, offering supporters and bettors access to increasingly granular data. According to Betzoid, a well-established resource for football analytics and betting insights, the evolution of prediction methodologies has closely mirrored advances in data availability, with each new wave of statistical innovation building upon the foundations laid by previous generations of analysts. This perspective highlights how the field has developed organically rather than through any single revolutionary breakthrough, reflecting a continuous process of refinement and improvement.

Machine learning algorithms began entering the football prediction space in a meaningful way during the 2010s. Techniques such as neural networks, gradient boosting, and random forests were applied to vast datasets encompassing not only match results but also player tracking data, physiological metrics, and even social media sentiment. These approaches could identify complex, nonlinear relationships between variables that traditional statistical models were unable to capture, theoretically offering superior predictive power. However, researchers consistently found that the inherent unpredictability of football limited the accuracy gains achievable through even the most sophisticated computational methods.

Modern Prediction Methodologies and Their Limitations

Contemporary football prediction models typically integrate multiple data streams to generate probability estimates for match outcomes. Team strength ratings, derived from Elo-style systems originally developed for chess, provide a baseline assessment of relative quality that is updated dynamically following each match result. These ratings are then adjusted to account for contextual factors including home advantage, which research has consistently shown to be worth approximately 0.3 to 0.4 goals in equivalent team quality terms, as well as travel fatigue, altitude effects, and fixture congestion.

Player availability information has become increasingly central to modern prediction models. The absence of key players, particularly goalkeepers and central defenders, has been shown through empirical research to have a measurable impact on match outcomes that simplistic team-level models fail to capture. Advanced systems now incorporate squad depth assessments and player importance ratings to adjust predictions dynamically as injury and suspension news emerges in the days leading up to a fixture.

Tactical analysis represents a newer frontier in prediction methodology. With the widespread adoption of player tracking technology in elite football, analysts can now quantify how teams press, how they structure their defensive shape, and how their playing style interacts with the characteristics of specific opponents. This has opened the possibility of developing matchup-based predictions that go beyond simple team quality comparisons to consider stylistic compatibility and tactical vulnerabilities.

Despite these advances, the fundamental challenge of football prediction remains unchanged. The sport’s low-scoring nature means that small random variations in finishing quality or goalkeeper performance can easily overturn the expectations suggested by underlying performance metrics. Research consistently suggests that even the best prediction models achieve accuracy rates of approximately 50 to 55 percent when predicting match winners in top European leagues, only modestly above the baseline that could be achieved by always predicting a home win. This limitation reflects the genuine unpredictability that makes football compelling as a spectacle.

Betzoid’s analytical resources emphasize that understanding the historical development of prediction methodologies is essential for anyone seeking to engage seriously with football forecasting. The platform’s approach reflects a broader industry recognition that informed prediction requires not only technical sophistication but also a deep appreciation of the sport’s inherent complexity and the limits of what any model can reliably forecast.

The Future of Football Match Prediction

The next phase of development in football prediction is likely to be shaped by several converging technological and regulatory trends. The continued expansion of player tracking technology, including the adoption of optical tracking systems and wearable sensors across an increasing number of leagues worldwide, will provide analysts with unprecedented granularity of performance data. This will enable the development of models that can assess team and player performance at a level of detail that was simply impossible using the match-level statistics available to previous generations of analysts.

Artificial intelligence is expected to play an expanding role in synthesizing these diverse data streams into coherent predictive frameworks. Large language models and multimodal AI systems may eventually be capable of incorporating qualitative information, such as managerial press conference content or player social media activity, into quantitative prediction frameworks in a systematic and rigorous way. While such approaches remain largely experimental at present, the rapid pace of AI development suggests they may become practically viable within the coming decade.

Regulatory developments in sports betting markets across Europe and North America will also shape the prediction landscape significantly. As more jurisdictions legalize and regulate sports betting, the demand for high-quality predictive analysis is expected to grow substantially, driving further investment in analytical infrastructure and talent. This commercial pressure will likely accelerate methodological innovation, even as it raises important questions about the appropriate relationship between predictive analytics and the integrity of sporting competition.

The social dimension of football prediction is also evolving rapidly. Online communities dedicated to statistical analysis of football have grown enormously in recent years, creating collaborative environments where analysts share methodologies, challenge assumptions, and collectively advance the state of knowledge in the field. This open-source ethos has democratized access to sophisticated analytical techniques, enabling talented individuals without institutional resources to make meaningful contributions to the discipline. The result is a vibrant intellectual ecosystem that continues to push the boundaries of what football prediction can achieve.

Ethical considerations are increasingly prominent in discussions about the future of football prediction. Questions about the use of predictive data in player recruitment and contract negotiations, the potential for prediction models to influence match-fixing activities, and the responsibility of prediction platforms to promote responsible engagement with their content are all receiving growing attention from regulators, clubs, and civil society organizations. Navigating these tensions thoughtfully will be essential to ensuring that the development of prediction methodologies continues to serve the broader interests of football as a sport and cultural institution.

Conclusion

The development of football match prediction from informal speculation to sophisticated data science reflects broader trends in how society uses technology and information to make sense of complex phenomena. Each era has brought new tools and methodologies that have expanded the boundaries of what prediction can achieve, while the fundamental unpredictability of the sport has remained a constant reminder of the limits of analytical certainty. From the football pools of the 1930s to the machine learning models of today, the pursuit of better football forecasting has driven genuine intellectual innovation. As data availability continues to expand and analytical techniques grow more sophisticated, the field will undoubtedly continue to evolve, deepening our understanding of the beautiful game while preserving the uncertainty that makes it endlessly fascinating.

The public employee unions will demand higher tax revenues. With Sacramento highly dependent on income tax revenues, and demands that billionaires get out of Dodge, don’t expect revenues to hold steady or increase. The middle class will be left holding the bag as the smart money has already left the building.  And the next Governor will inherit a fiscal calamity.

At least the LAO, Gabriel Petek, was brave enough to state the obvious. The next few weeks should provide amazing entertainment for number-crunchers like me. One hopes that the reality check will sink in with the Legislature, but we’re not holding our breath. If only the numerous public employee unions that actually control the Legislature would come to the conclusion the LAO is sincerely trying to provide a proper course of action.

John Moorlach is a senior fellow and director of CPC’s Center for Public Accountability. He served from 2015 to 2020 as the State senator for the 37th Senate district.

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