State Budget Condition Publications

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Webcast: Elizabeth Hill Provides Preliminary Comments on the Governor's Budget

January 24, 2007 - Elizabeth Hill comments on the proposed Governor's Budget in her January 24th testimony before the Senate Budget and Fiscal Review Committee.


Webcast: Elizabeth Hill Discusses the 2007-08 Governor's Budget

January 12, 2007 - Elizabeth Hill discusses our preliminary assessment of the the 2007-08 Governor's budget at her media presentation of January 12th 2007.


Overview of the Governor’s Budget: 2007-08

January 12, 2007 - The 2007-08 Governor’s Budget proposes a major redirection of transportation funds, reductions in social services, and a variety of other actions to eliminate a significant shortfall in 2007-08. The plan assumes that adoption of its proposals will result in a balanced budget with an over-$2 billion reserve. However, the budget contains a significant number of downside risks and is based on a number of optimistic assumptions. Its key proposals also raise serious policy and legal issues. Adverse outcomes in just a few of these areas could easily eliminate most or all of the proposed reserve.


LAO Recommended Legislation

December 4, 2006 - 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.


Cal Facts: California's Economy and Budget in Perspective-2006

December 4, 2006 - 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.


California's Fiscal Outlook: LAO Projections, 2006-07 Through 2011-12

November 15, 2006 - Following a year in which major revenue increases were allocated to education and other state programs, California policymakers will face a much tougher budget in 2007-08. According to our updated forecast, the state’s budget faces operating shortfalls in excess of $5 billion in both 2007-08 and 2008-09, which will require significant actions to eliminate.


California Spending Plan 2006-07: The Budget Act and Related Legislation

September 26, 2006 - The state spending plan for 2006-07 includes total budget expenditures of $128.4 billion, sharply increasing funding for education, providing targeted increases in several other program areas, and prepaying nearly $3 billion in budgetary debt. The expanded commitments included in this spending plan are in striking contrast to the four previous years, when policymakers were faced with closing major budget shortfalls. Despite much stronger-than-expected revenues, 2006-07 expenditures exceed revenues, with the difference being covered by the drawdown of carryover reserves available from 2005-06. Based on our out-year estimates of revenues and expenditures, we estimate that this imbalance will continue in 2007-08 and 2008-09 absent corrective action, with annual operating shortfalls in the range of $4.5 billion and $5 billion projected for this period.


November 7, 2006 Ballot Measure Analyses for Public Display

July 25, 2006 - Our analyses of measures included in the November 7, 2006 special election. (Note that until August 15, 2006 there may be court ordered changes to these analyses and other portions of the voter information guide. See the Secretary of State's web site for the public display of the full voter information guide.)


Major Features of the 2006 California Budget

July 7, 2006 - On June 27, 2006, the Legislature passed the 2006-07 Budget Bill along with implementing legislation which authorizes total spending of $127.9 billion, of which $101.3 billion is from the General Fund and $26.6 billion is from special funds. The 2006-07 budget reflects a sharply improving fiscal picture, brought about by continued stronger-than-expected growth in General Fund revenues. Spending under the plan increases by over 9 percent between 2005-06 and 2006-07, reflecting significant program augmentations, budgetary debt prepayments, and rising caseloads and costs in state programs. Based on our current projections of revenues and expenditures under the 2006-07 Budget Act policies, the state would continue to face operating shortfalls in the range of $4.5 billion to $5 billion in 2007-08 and 2008-09.


Supplemental Report of the 2006 Budget Act: 2006-07 Fiscal Year

June 28, 2006 - Statements of intent for requests for studies adopted by the Legislature as a supplement to the 2006 Budget Act.


The 2006-07 Budget Package

June 27, 2006 - Summary of the 2007-08 budget package considered by the Legislature on July 20, 2007.


Various Budget Conference Committee Handouts

June 2, 2006 - Various handouts prepared for the Budget Conference Committee


Overview of the 2006-07 May Revision

May 15, 2006 - The state’s strong revenue performance-a $7.5 billion increase since January-presents an extraordinary opportunity for the Legislature. Key decisions are: (1) how much of the increase should be provided to K-14 education, (2) should increased school funding be allocated to new initiatives or to strengthen existing programs and pay off debts, and (3) which state debt should be prepaid? We urge the Legislature to focus on regaining the state’s fiscal balance, particularly in light of the risks and uncertainties facing the state.


Ninth Annual Analysis Quiz (Antiobesity Edition)

March 17, 2006 - Our ninth annual contest to test just how closely the members of the news media are reading our Perspectives and Issues (P&I) and Analysis books is over. This time, the analysts win. The contest rules provided that the first reporter to submit a completed and correct entry by the deadline would win. No correct entry was submitted by noon yesterday, so our hard-working analytical staff at LAO who helped to dream up these questions won this time out. In light of public health concerns over obesity, their prize was an assortment of bagels and muffins from Noah’s Bagels instead of the traditional prize of donuts.


Automatic Spending for the Entire Judicial Branch is Not Justified

February 23, 2006 - The Governor’s budget proposes to expand the use of formula-based budgeting to the entire Judicial Branch. However, the proposal lacks a clear policy rationale and would likely lead to over budgeting of the courts. We recommend rejection of this proposal.

State Budget Condition Staff

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