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May 16, 2005 - The May Revision proposes to use about $4 billion in new funds generated from an improved revenue outlook to reduce budgetary debt and restore the Proposition 42 transfer to transportation. We believe the administration’s general approach of using the resources for debt reduction and one-time purposes is sensible in light of the state’s structural budget shortfall. We strongly urge the Legislature to aim at ongoing solutions which are of the same magnitude as the administration’s proposal.
April 14, 2005 - The annual quiz that tests your knowledge of our 1400 page Analysis of the Budget Bill and Perspectives and Issues!
February 24, 2005 - This handout consists of charts used at the press conference for the presentation of the 2005-06 Analysis.
February 24, 2005 - Our annual detailed examination of the Budget Bill based on the Governor's Budget. It includes hundreds of findings and recommendations related to education, health and social services, criminal justice, transportation, resources, capital outlay, information technology, and local government.
February 23, 2005 - This handout consists of charts used at the press conference for the presentation of the 2005-06 Perspectives and Issues.
February 22, 2005 - The budget proposes total state expenditures of $109 billion in 2005-06. This includes $85.7 billion from the General Fund (up 4.2 percent from the current year) and $23.3 billion from special funds (up 5.3 percent from the current year). The overall General Fund spending growth rate reflects (1) changes in caseloads and utilization for major programs; (2) the impacts of the Governor's savings proposals; and (3) the impacts of numerous other special factors, such as one-time savings in the 2004-05 budget. The proposal includes about $3.5 billion in new budgetary borrowing related primarily to deficit-financing bonds, a judgment bond, and Proposition 42 suspension. This brings the total amount of budgetary borrowing outstanding to about $29 billion as of the end of 2005-06.
February 22, 2005 - The California economy is expanding at a healthy pace in early 2005, as evidenced by real estate construction, exports, company reports of sales and profits, and business-related tax receipts. The one area of concern remains jobs, which are lagging due to intense focus on cost cutting and efficiencies. We project the California economic expansion to continue at a moderate pace, with personal income expanding by roughly 5.6 percent and jobs growing 1.5 percent annually during the next two years.
February 22, 2005 - The Legislature has an important budget opportunity. We project that revenues are $2.2 billion higher (for the current and budget years combined) than reflected in the Governor's budget. This, combined with the magnitude of ongoing solutions proposed in the budget plan, would result in a balanced 2005-06 budget with a solid reserve. However, the price of inaction is significant. Without the adoption of ongoing solutions of the magnitude offered by the budget plan, the 2005-06 budget would be precariously balanced and the state would experience major budget shortfalls in 2006-07 and beyond. These shortfalls would be close to $10 billion.
February 22, 2005 - The Legislature has an important budget opportunity. We project that revenues are $2.2 billion higher (for the current and budget years combined) than reflected in the Governor's budget. This, combined with the magnitude of ongoing solutions proposed in the budget plan, would result in a balanced 2005-06 budget with a solid reserve. However, the price of inaction is significant. Without the adoption of ongoing solutions of the magnitude offered by the budget plan, the 2005-06 budget would be precariously balanced and the state would experience major budget shortfalls in 2006-07 and beyond. These shortfalls would be close to $10 billion.
February 22, 2005 - On January 6, 2005, the administration released its plans to eliminate 88 boards and commissions and to reorganize the Youth and Adult Correctional Agency (YACA). For each of the plans, we provide an assessment of its fiscal effect and raise key issues. Although the administration recently has decided not to forward its boards and commissions proposal to the Legislature, the piece provides key considerations for the Legislature when seeking to consolidate these types of entities. Regarding the YACA proposal, we conclude it has the potential to improve the efficiency, accountability, and effectiveness of the state's prison system. However, the plan omits important details that the Legislature requires in order to fully evaluate its merits. Our analysis indicates that the proposed reorganization would probably result in net costs in the short term, but has the potential to achieve significant long-term net savings by placing a greater emphasis on inmate rehabilitation as a means of increasing public safety.
January 12, 2005 - The Governor's proposal contains significant program savings—particularly in K-12 education, social services, and transportation—and borrowing to address the state's 2005-06 budget shortfall. While the 2005-06 proposal has several positive attributes, it falls well short of fully addressing the state's ongoing projected fiscal imbalances. Moreover, its budget reform proposals would put more future state spending on "cruise control" and hamper the ability of future policy makers to establish budget priorities.
December 6, 2004 - Various "snapshot" pieces of information, providing a broad overview of public finance and program trends in the state. It consists of a series of charts and tables which address questions frequently asked of our office.