Keynote Speech to the Independent Cities Association's Twenty-Third Annual Seminar on the nature of state-city relations in California. Legislative Analyst Bill Hamm describes the fiscal context in which decisions on the 1983-84 state budget will be made, and what this context implies for fiscal relief. He also goes beyond the budget to discuss the nature of the state's relationship with the 432 cities in California, including the 44 represented by the Independent Cities Association.