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December 2, 2002 - The role of the Legislative Analyst's Office is to review state programs and make recommendations to the Legislature as to how the state can operate more effectively and efficiently. While most of our recommendations can be addressed in the annual budget bill, some involve recommended changes in law that require separate legislation. This report summarizes various changes to law that we have recommended in recent years.
December 2, 2002 - A series of charts and tables which address questions frequently asked of our office. These "snapshots" of information provide a broad overview of public finance and program trends in the state.
November 14, 2002 - For the second year in a row, the state faces a budget problem in excess of $20 billion. Our updated forecast indicates the following. Current Year: California will end the 2002-03 fiscal year with a General Fund deficit of $6.1 billion. Budget Year: The 2003-04 budget faces a cumulative year-end deficit of $21.1 billion, absent corrective actions. However, if California's economic performance continues to lag the shortfall could easily be several billion dollars higher. Beyond the Budget Year: Over the longer term, the state will face annual operating deficits of between roughly $12 billion and $16 billion per year.
October 11, 2002 - A presentation to the Association of California School Administrators about California's Fiscal Challenges.
September 27, 2002 - In this report, we discuss the factors underlying the major fiscal challenge facing the state in 2002-03, describe the key actions taken to address the shortfall, and provide detail on the adopted budget package.
July 7, 2002 - We did not publish a Major Features report in 2002. The links above will open instead the California Spending Plan, 2002-03, published in September, 2002, which provides similar information in more detail.
May 16, 2002 - The Governor's May Revision addresses an enormous increase in the state's budget shortfall through a variety of spending reductions, tax increases, fund transfers, and additional borrowing. Overall, it is a credible plan. At the same time, the proposal contains some risks and even with its adoption, the state would face additional shortfalls in the future.
February 20, 2002 - We discuss the Governor's different types of budget balancing borrowing ($4.8 billion) and the factors that should be focused on by the Legislature in evaluating these proposals and other types of borrowing options.
February 20, 2002 - Perspectives on the state's fiscal condition and the budget proposed by the Governor for 2002-03. We find that the state will need to identify and additional $5 billion in budget solutions beyond those proposed by the administration.
February 20, 2002 - Based on our projections of revenues and expenditures, adoption of the Governor's spending policies would result in a year-end deficit of about $4.5 billion in 2002-03. This represents a $5 billion deterioration in the budget condition relative to the administration's estimate, which assumes a $511 million reserve.
February 20, 2002 - The U.S. and California economies are nearly one year into a recession that was initially caused by such factors as sharp declines in spending by businesses on capital goods, and then aggravated by the September 11 terrorist attacks. The downturn has been mild so far in terms of employment, although more severe in terms of income losses. Our forecast is that the recession will conclude in the next couple of months and that a sustained expansion will begin before mid-year. While employment will recoup its losses by the end of 2002, the decline in income related to stock options will be longer lasting. Our outlook is predicated on (1) a rebound in high-tech spending in the second half of the year and (2) the absence of significant terrorism-related disruptions to the national or state economies.