September 2005 

California Spending Plan 2005-06

Contents

Chapter 1
The 2005-06 Budget-The Problem and The Solution

Factors Behind Shortfall 1

Budget Solution-Key Components 2

Out-Year Impacts of the 2005-06 Budget 3

Chapter 2
Key Features of the Budget Act and Related Legislation

The Budget Totals 5

Evolution of the Budget 11

State Appropriations Limit 16

Budget-Related Legislation 16

Chapter 3
Expenditure Highlights

Proposition 98 17

K-12 Proposition 98 23

Higher Education 28

Health 33

Social Services 39

Judiciary and Criminal Justice 45

Transportation 49

Resources and Environmental Protection 52

Capital Outlay 58

Other Major Provisions 59

Acknowledgments The Legislative Analyst's Office (LAO) is a nonpartisan office which provides fiscal and policy information and advice to the Legislature.

LAO Publications To request publications call (916) 445-4656. This report and others, as well as an E-mail subscription service, are available on the LAO's Internet site at www.lao.ca.gov. The LAO is located at 925 L Street, Suite 1000, Sacramento, CA 95814.