The Legislative Analyst's Office (LAO) provides analysis and nonpartisan advice to the California Legislature on fiscal and policy issues, and has done so for 55 years. the LAO enjoys a national reputation for its fiscal and programmatic expertise, and its high quality, nonpartisan analyses. The LAO is overseen by the Joint Legislative Budget Committee (JLBC), a 16-member bipartisan committee of Assembly and Senate Members. The office currently has a staff of 49 personnel-years--36 analytical and 13 support, who serve as a nonpartisan staff resource to all legislators. This report: (1) Describes the functions and organization of the LAO, and the services it provides to the Legislature an the people of California. (2) Summarizes the activities and finances of the office during the fiscal year 1995-1996, and (3) Updates Members of the Legislature on changes in the office since our last report.