State Budget Condition Publications

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Report

Perspectives on State Expenditures 1994-95

February 23, 1994 - The Governor's Budget proposes spending $52.5 billion from the General Fund and state special funds in 1994-95, as shown in Figure 1. This expenditure level is only slightly more than estimated current-year spending of $52.3 billion—an increase of $228 million, or 0.4 percent. General Fund spending shown in the budget declines by 1.4 percent, while spending from special funds increases by 6.1 percent. However, as we discuss in greater detail later in this part, this reflects a shift in how programs are financed rather than a change in program spending priorities or in underlying revenue trends. This shift in financing results from the Governor's state-county restructuring proposal.

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Perspectives and Issues 1994-95

February 23, 1994 - The 1994-95 Governor's Budget recognizes that the two-year budget plan adopted last June has been undermined by the continuing stubborn state recession. Faced with an $8 billion budget funding gap for 1993-94, the Legislature and Governor adopted a two-year plan to achieve a balanced budget in 1994-95. That plan now is $4.9 billion out of balance based on the state's current revenue and spending trends identified in the 1994-95 Governor's Budget.

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Analysis of the 1994-95 Budget Bill

February 23, 1994 - Analysis of the 1994-95 Budget Bill

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Overview of the Governor's Budget 1994-95

January 1, 1994 - The 1994-95 Governor's Budget recognizes that the two-year budget plan adopted last June has been undermined by the continuing stubborn state recession. Faced with an $8 billion budget funding gap for 1993-94, the Legislature and Governor adopted a two-year plan to achieve a balanced budget in 1994-95. That plan now is $4.9 billion out of balance based on the state's current revenue and spending trends identified in the 1994-95 Governor's Budget.

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Performance Budgeting: Reshaping The State’s Budget Process

October 25, 1993 - Performance Budgeting: Reshaping The State’s Budget Process

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The 1993-94 Budget Act and Related Legislation

September 1, 1993 - This report summarizes the fiscal effect of the 1993 Budget Act (Ch 55/93, SB 80), including the effects of major legislation that was enacted as part of the overall state spending plan for 1993-94. Our review indicates that the recently enacted two-year budget plan is now out of balance due to a variety of budget adjustments. These adjustments, reflecting actions or decisions that already have occurred, increase spending over the two years by a total of $660 million, which results in a 1994-95 ending deficit of $560 million in the General Fund, absent corrective action, rather than the $100 million reserve that was projected by the Administration when the budget was adopted.

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Supplemental Report of the 1993 Budget Act

August 31, 1993 - Supplemental Report of the 1993 Budget Act

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California Update: 1993-94 Budget Enacted

July 1, 1993 - California Update: 1993-94 Budget Enacted

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Focus Budget 1993: Highlighting Major Features of the 1993 California Budget

July 1, 1993 - On June 30, Governor Wilson signed the 1993 Budget Act and various companion measures that, together, comprise the 1993-94 budget package. These measures authorize total state spending of $52.1 billion, consisting of $38.5 billion from the General Fund, $12.1 billion from special funds, and $1.5 billion from bond funds. Compared with 1992-93, total state spending will decrease by $5.5 billion, or 9.6 percent. General Fund spending declines by $2.6 billion and spending from bond funds declines by $3.2 billion, while special fund spending increases slightly by $220 million. A major feature of the budget package is the adoption of the Governor’s proposal to shift $2.6 billion of property tax revenues from local governments to schools. This shift reduces the state’s education funding requirement under Proposition 98 by an equivalent amount.

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1993-94 Budget Enacted; Economic and Revenue Developments

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July 1, 1993 - 1993-94 Budget Enacted; Economic and Revenue Developments

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Legislature Passes 1993-94 Budget

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June 1, 1993 - Legislature Passes 1993-94 Budget

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Overview of the May Revision 1993-94

May 1, 1993 - On May 20th, the Administration issued the May Revision of the 1993-94 Governor’s Budget. As originally presented in January, the budget proposal addressed a budget gap that we estimated at $8.6 billion (please see The 1993-94 Budget: Perspectives and Issues, Part I ). Since the introduction of the original budget proposal, this gap has declined slightly. In contrast, the amount of savings that could be achieved from the original budget proposals has decreased by a much larger amount. While the May Revision does propose some additional spending reductions to partially replace these lost savings, the Administration proposes to roll over a deficit of $667 million into 1994-95. A major solution component continues to be a $2.6 billion local property tax shift. We conclude that, as currently structured, this property tax shift proposal is unworkable. It significantly reduces local (especially county) resources without a corresponding change in local responsibilities or a practical way to find replacement revenue in 1993-94.

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Cal Facts: California Economy and Budget in Perspective-1993

May 1, 1993 - Cal Facts: California Economy and Budget in Perspective

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The 1993-94 Budget: Perspectives and Issues

February 24, 1993 - The 1993-94 Governor's Budget recognizes a decline in the state's fiscal fortunes for the fifth consecutive year. The continuing state recession has once again undermined the state's current-year spending plan, and will force the Legislature and the Administration into more painful choices as they struggle to balance the budget for the 1993-94 fiscal year. Even without attempting to provide for a prudent reserve, this task will require spending cuts or revenue increases conservatively estimated at $8.6 billion over the next 18 months. Given the magnitude of actions already taken in recent years, resolving this year's fiscal crisis requires a fundamental rethinking of governmental responsibilities in California. Here we assess the state's current fiscal outlook and evaluate the Governor's response to the situation. We also examine the implications of the 1994-95 outlook on possible budget strategies for 1993-94.

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State Fiscal Picture 1993-94

February 1, 1993 - State Fiscal Picture 1993-94

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