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State Budget Condition Publications

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Report

2009-10 California Spending Plan: The Budget Package

October 6, 2009 - After considering both the February and July budget packages (including the Governor’s line–item vetoes), the 2009–10 state spending plan includes total state budget expenditures of $110 billion from the General Fund and special funds. Spending from these funds in 2009–10 will be $20 billion—15 percent—less than it was in 2007–08. In addition, the budget assumes spending from bond funds of nearly $10 billion as the state continues to allocate moneys from the $43 billion bond package approved at the November 2006 election. While state expenditures decline in 2009–10, federal funds spending will increase dramatically. Federal stimulus funding provided by the American Recovery and Reinvestment Act (ARRA) is largely responsible for the increase in spending from federal funds—from $56 billion in 2007–08 to $77 billion in 2008–09 and an estimated $94 billion in 2009–10.

Report

Supplemental Report of the 2009-10 Budget Package

September 11, 2009 - Statements of legislative intent and requests for studies adopted during deliberations on the 2009-10 budget package.

Letter

California's Key Liabilities

August 12, 2009 - Memo to Assembly Member Juan Arambula, July 30, 2009. This memo discusses California's debt, deferred payments, and other liabilities that will affect the state’s financial health in the future.

Report

July 2009 Budget Package

July 29, 2009 - On July 24, 2009, the Legislature passed amendments to the 2009-10 Budget Bill, along with implementing legislation. On July 28, 2009, the Governor signed the budget package, while vetoing $489 million in General Fund appropriations. The budget package projects $89.5 billion of revenues and transfers to the General Fund, and authorizes total General Fund spending of $84.6 billion. The plan leaves the General Fund with an estimated reserve of $500 million at the end of the 2009-10 fiscal year. This publication summarizes the actions taken by the Legislature and Governor.

Handout

Summary of the Conference Committee Budget Package

June 22, 2009 - Conference Committee Budget Package

Handout

Ability to Reduce General Fund Spending

June 11, 2009 - Presented to the Budget Conference Committee, June 4, 2009

Presentation

The State Budget Situation

May 27, 2009 - Presented to the California State Association of Counties (CSAC) 2009 Legislative Conference, May 27, 2009.

Other

Webcast: Mac Taylor Discusses the 2009-10 May Revision

May 21, 2009 - Mac Taylor Discusses the 2009-10 May Revision in this six minute video.

Report

Overview of the 2009-10 May Revision

May 21, 2009 - The Governor's estimate of a new $21 billion budget problem is reasonable. The May Revision proposals include major spending reductions and serious efforts for long–term state efficiencies and savings. By acting quickly and reducing reliance on some of the Governor’s riskiest proposals--such as financing $5.5 billion of the deficit by issuing revenue anticipation warrants--the Legislature can return the budget to balance, prevent another state cash crunch, and preserve core funding for what it deems to be California’s long–term priorities. To accomplish these goals, the Legislature now needs to cut lower–priority programs substantially or eliminate them. To address significant budget deficits forecast in future years, the Legislature also needs to begin work this year on measures that further improve the efficiency of state services for 2010–11 and beyond. (Note: the Appendix in the HTML version was corrected as of 2:30 p.m. on May 21, 2009.)

Other

Webcast: California’s Cash Flow Crisis, May 2009 Update

May 7, 2009 - Jason Dickerson Summarizes California's Cash Flow Crisis in May, 2009.

Report

California’s Cash Flow Crisis: May 2009 Update

May 7, 2009 - In part because state revenue collections have been weaker than expected since passage of the February budget package, major cash flow difficulties loom for California in the summer and fall of 2009. Without significant budget-balancing and cash management actions by the Legislature or unprecedented borrowing from the short-term credit markets, the state will not be able to pay many of its bills on time for much of 2009-10. Returning the budget to balance will be important to resolving the state's cash flow challenges. We recommend that the Legislature act quickly to address these challenges—by late June or early July at the latest. We also note that the state should be cautious about accepting additional federal assistance for the state's cash flow problems, especially given the strings that may be attached to such aid. (Five-minute video summary)

See also: May 22, 2009, Conference Committee Update: California's Cash Flow Crisis

Report

Combined Index for the 2009-10 Budget Analysis Series

April 2, 2009 - Combined index of the full 14 report 2009-10 Budget Analysis Series.

Handout

California's Fiscal Outlook

March 24, 2009 - Presented to UCLA Anderson Economic Forecast Seminar

Other

Webcast: Mac Taylor Discusses the Fiscal Outlook Under the February 2009 Budget Package

March 13, 2009 - Mac Taylor's press conference in which he discusses the fiscal outlook under the February 2009 budget package.

Report

2009-10 Budget Analysis Series: The Fiscal Outlook Under the February Budget Package

March 13, 2009 - The budget package of $42 billion in solutions adopted by the Legislature and the Governor in February was an impressive step in addressing the state’s monumental budget shortfall. The budget uses both sides of the ledger—revenue increases and spending reductions—to attack the state’s dire fiscal situation. Unfortunately, the state’s economic and revenue outlook continues to deteriorate. Even in the few weeks since the budget was signed, there have been a series of negative developments. Our updated revenue forecast projects that revenues will fall short of the assumptions in the budget package by $8 billion. Moreover, a number of the adopted solutions—revenue increases and spending reductions—are of a short–term duration. Thus, without corrective actions, the state’s huge operating shortfalls will reappear in future years—growing from $12.6 billion in 2010–11 to $26 billion in 2013–14.

State Budget Condition Staff

Ann Hollingshead
(916) 319-8305
State Budget and Federal Funding
 
Carolyn Chu
(916) 319-8326
Chief Deputy Legislative Analyst