California

1
Californias Fiscal Outlook

• Legislative Analysts Office

www.lao.ca.gov
2
What Happened to the 4 Billion Reserve?
(In Millions)
3
Large Operating Shortfalls Projected Throughout
Forecast Period
General Fund (In Billions)
4
Modest Economic Growth Anticipated for California
Annual Percentage Change
5
California Employment SlowdownPrimarily Confined
to Real Estate Industries
Cumulative Percent Jobs Change Since January 2000
6
Modest PIT Liability Growth Expected
Percent Change
7
Both Taxable Sales and Profits to Slow
Annual Percent Change
8
Proposition 98Difficult Year Ahead But Major New
Funds in the Future
(In Millions)
9
Taking Steps to Balance the Budget

• Almost 10 billion in solutions needed for
  2008-09.
• Ongoing actions needed for substantial portion
  of solution.