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February 22, 2006

Highlights of the 2006-07 Perspectives & Issues

Part I-State Fiscal Picture

Part II-Perspectives on the Economy and Demographics

Part III-Perspectives on State Revenues

Part IV-Perspectives on State Expenditures

Part V-Major Issues Facing the Legislature

State Has $40 Billion to $70 Billion in Unfunded Liabilities for Retiree Health Costs

(Contact: Michael Cohen, 319-8310.)

Many of Governor’s Emergency Preparedness Proposals Are Flawed

(Contact: Michael Cohen, 319-8310.)

New Federal Act Will Provide Transportation Funding Through 2009

(Contact: Dana Curry, 319-8320.)

Reorganizing the State’s Energy-Related Activities Needs Jump Start

(Contact: Mark Newton, 319-8323.)

Mental Health Mandates Continue to Pose Challenges

(Contact: Daniel Carson, 319-8350.)

LAO Publications

To request publications call (916) 445-4656. This report and others, as well as an E-mail subscription service, are available on the LAO's Internet site at The LAO is located at 925 L Street, Suite 1000, Sacramento, CA 95814.

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