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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.
February 20, 2002 - The Governor's budget proposes total state spending in 2002-03 of $97.9 billion, including spending from both the state's General Fund and its special funds (see Figure 1). Total budget-year spending is slightly less than estimated current-year spending—by $402 million (0.4 percent).
February 20, 2002 - We estimate that the state will need to identify $5 billion in additional budget solutions beyond those proposed by the administration. This compendium contains more than 100 expenditure reduction/revenue raising options to help the Legislature address this larger shortfall. 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 growing budget shortfall.
February 20, 2002 - 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.
January 15, 2002 - The 2002-03 Governor's Budget offers a plan for addressing the state's $12-plus billion budgetary shortfall. While "on paper" the plan appears to work, many of its assumptions are overly optimistic, it relies largely on one-time solutions, and it results in substantial long- term out-year costs. Moreover, the plan does not resolve the state's budgetary imbalance in subsequent years.
December 19, 2001 - Due to weak economic and revenue performance, California faces a $12.4 billion budget shortfall in 2002-03. We identify several key budget-balancing principles and strategies and identify specific spending and revenue options for implementing these strategies. Finally, we review the administration's initial proposals to address the current-year shortfall and offer additional current-year options for the Legislature to consider.
November 14, 2001 - California will end 2001-02 with a deficit of $4.5 billion, while the 2002-03 budget year faces a shortfall of $12.4 billion and potentially even more if the recovery we are assuming for next spring is delayed. Annual budget shortfalls will persist well beyond 2002-03 absent corrective actions. Thus substantial ongoing expenditure cuts and/or revenue augmentations are required to bring the budget back into balance.
September 24, 2001 - The 2001-02 Budget Act was signed into law by Governor Davis on July 26, 2001. Together with its related implementing legislation, the budget authorizes total spending from all funds of $103.3 billion. This report details the contents of this measure.