The smaller deficit and projected success are due to the governor's conservative fiscal policies, some say. (Neon Tommy)

California faces a $1.9 billion deficit in the upcoming fiscal period (through June 2014), a huge drop from the $13 billion deficit from last November, according to the Sacramento Bee.

The deficit in part has been reduced by two tax initiatives passed by voters in the November election, including the hard-fought Proposition 30.

"With the passage of Proposition 30, some very difficult reductions have been avoided," H.D. Palmer, deputy of California's Department of Finance, said.

According to the Legislative Analyst's Office, which is the original source of the low deficit numbers, by 2014, California will have a surplus of $1 billion dollars, eliminating carryover deficit from past years. 

The smaller deficit and projected success are due to the governor's conservative fiscal policies, Palmer said.

"The deficit is dramatically lower than when the governor took office," he said. "We have to maintain this lower level of expenditures."

The findings show that a better state economy, budget cuts and the decision by voters to raise the sales tax and raise taxes on incomes at and above $250,000 were the main causes for the turnaround. In addition, a decision to eliminate cost-of-living and inflation adjustments in the California programs in 2009 strongly affected the budget. 

"We're looking at slow growth, but growth nonetheless," said Palmer. "It's a testament to the work we've done so far."

The Department of Finance said it had discovered $1.4 billion in extra money from an accounting charge, significantly reducing the deficit as a whole. If current policies continue, the surplus could become about $7 billion by 2017. 

However, Palmer also said that the fiscal turnaround will only continue if the current policies remain in place.

"We can't turn back," Palmer said. "We have to maintain fiscal discipline."

This term, Democrats have a two-thirds majority in both Legislature chambers, something that has not been achieved by a single party since 1933. 

"This report validates the hard work the state has done to cut its deficit and balance its budget," said Gov. Jerry Brown in a statement. 

Reach Staff Reporter Nandini Ruparel here.