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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.
December 6, 2004 - 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.
November 17, 2004 - According to our projections, the state is facing a year-end shortfall of $6.7 billion in 2005-06. Over the longer term, absent corrective actions, the state faces persistent annual current-law operating deficits that peak at nearly $10 billion in 2006-07, before narrowing somewhat in subsequent years.
September 22, 2004 - The state spending plan for 2004-05 includes total expenditures from all funds of $105.4 billion. This total includes budgetary spending of $102.4 billion, reflecting $78.7 billion from the General Fund and $23.7 billion from special funds. In addition, spending from selected bond funds totals $3 billion. The 2004-05 budget includes significant ongoing savings and it makes some progress toward resolving the state's ongoing structural budget shortfall. Nevertheless, like the two prior budgets, the current spending plan (1) contains a significant number of one-time or limited-term solutions and (2) obligates additional spending in future years. The combination of these factors suggests that state will continue to face out-year budget shortfalls, absent corrective action.
August 27, 2004 - On August 3, 2004, the California Performance Review (CPR) released its report on reforming California's state government, with the aim of making it more efficient and more responsive to its citizens. This report provides our initial comments on the CPR report. Specifically, we: (1) provide an overview of its reorganization framework and other individual recommendations, (2) discuss the savings it assumes from its major proposals, and (3) raise key issues and considerations relating to CPR's various proposals.
July 28, 2004 - A summary of the 2004-05 Budget Bill (SB 1113, as amended) considered by the Assembly on July 28, 2004.
July 7, 2004 - We did not publish a Major Features report in 2004. The links above will open instead the California Spending Plan, 2004-05, published in September, 2004, which provides similar information in more detail.
May 17, 2004 - The state's near-term fiscal picture has improved significantly as a result of an improved revenue outlook and the one-time receipt of funds. Despite this improvement, the state's long-term fiscal outlook relative to the January budget plan has worsened. The May Revision plan misses an opportunity to make further progress toward eliminating the state's long-term structural imbalance.
March 19, 2004 - Presented to San Mateo Town Hall on March 18, 2004.
March 17, 2004 - The annual quiz that tests your knowledge of our 1400 page Analysis of the Budget Bill and Perspectives and Issues.
February 18, 2004 - In this piece, we present options for the Legislature's consideration. We have identified expenditures that may be considered of lower priority in tough budget times. It is not that these activities are without merit or not desirable. In better fiscal times we would not necessarily put such options on the table. However, we offer them in the context of a need to solve a massive budget shortfall. We have also identified selected revenue options for the Legislature's consideration. These options generally involve tax expenditure programs which are either inefficient at achieving their objectives or are not the most efficient means of doing so.
February 18, 2004 - The Constitution gives the Legislature the power to appropriate funds. In order to address unexpected expenses (or "deficiencies") that arise during a fiscal year, the Legislature provides the administration with limited authority to spend at higher rates than foreseen in the budget act. The use of this deficiency process, however, has a history of problems—from being used to establish new programs with no statutory authority to serving as an alternative to the normal state budget process. Given this history, we outline a framework for legislative consideration which identifies a new approach to meet unexpected expenses. In our view, this framework would continue to allow necessary adjustments, while better protecting the appropriation authority of the Legislature.