State Fiscal Picture

• Overview Of The Governor's Budget
• Main Features of Governor's Proposal
• Budget's Focus Is on Education
• Other Programs--Modest Changes
• Budget Includes Large Amount of One-Time Commitments
• Recent Developments Render Revenue Forecast Conservative
• The LAO's Outlook for the Budget
• More Good News
• The 1999-00 and 2000-01 Outlooks
• What About After the Budget Year?
• Considerations for the Legislature
• Reserve Should Be Increased
• What Are the Other Priorities?
• Balancing One-Time Versus Ongoing Commitments
• Conclusion

Perspectives on the Economy and Demographics

• 1999 in Retrospect: Another Strong Year for The Nation
• Data Revisions Reveal Major Productivity Improvement
• 1999 Was Best Year of the Decade for California
• Wealth Effect Boosted Sales and Income
• Exports Rebounded in Second Half of Year
• Problem Areas: Aerospace and Inflation
• The Budget's Economic Outlook in Brief
• The LAO's Economic Outlook
  • National Forecast
  • California Forecast
  • Key Strengths and Concerns Regarding California
    • The Strengths
    • Concerns: Stock Market Uncertainties and Weak Home Construction
  • The California Outlook by Industry Sector
    • Computer Services Employment Growing Rapidly
    • Nonresidential Construction to Lead Building Sector
    • Comparisons of Recent Economic Forecasts
• California's Demographic Outlook
• Population to Surpass 35 Million
• Growth By Age Group to Vary
• Overall Budgetary Implications

Perspectives on State Revenues

• A Perspective on California's Extraordinary Recent Revenue Performance
• Main Source of Strength: Personal Income Taxes
• Factors Behind Rapid PIT Growth
• Why Are Incomes at the Top End Soaring?
• What Do We Know About the Characteristics of These Capital Gains?
• Implications for the Revenue Outlook Greater Unpredictability
• Conclusion
• The Budget's Forecast for State Revenues
• 1999-00 Forecast
• 2000-01 Forecast
• Tax Relief Measures
• The LAO's General Fund Revenue Outlook
• Revenues Up $4.2 Billion Over the Budget
• The LAO's Forecast for Major Revenue Sources
  • Personal Income Tax
    • Background
    • Liabilities Continue to Soar
    • Moderate Outlook for PIT Liabilities
    • The PIT Revenue Forecast
  • Sales and Use Tax
    • Background
    • SUED Tax Rates in California Vary
    • Taxable Sales Jumped in 1999
    • Taxable Sales Outlook--Healthy Though Moderating Growth
    • The SUED Revenue Forecast
  • Bank and Corporation Taxes
    • Background
    • Growth in the BCT Has Been Weak
    • What Is the Explanation?
    • The BCT Revenue Forecast
  • Outlook for Other General Fund Revenue Sources
• The Budget Forecast for Special Funds Revenues

An Overview of State Expenditures

• Proposed Total Spending in 1999-00 and 2000-01
  • General Fund Spending
  • Special Funds Spending
  • Spending From Federal Funds and Bond Proceeds
  • Federal Funds
  • Spending of Bond Proceeds
• State Spending--An Historical Perspective
  • Budget-Year Spending Growth Relatively Modest
  • Key Recent General Fund Spending Developments
• Proposed Spending by Program Area
  • Total Spending
    • Growth in 2000-01 and Over Time
  • General Fund Spending

Major Expenditure Proposals In the 2000-01 Budget

• Education
• Proposal--K-12
• Proposal--Higher Education
• Issues for Legislative Consideration
• Aging With Dignity Initiative
• Proposal
• Issues for Legislative Consideration
• CalWORKs Program
• Proposal
• Issues for Legislative Consideration
• Capital Outlay
• Proposal
• Issues For Legislative Consideration
• Criminal Justice
• Proposal
• Issues for Legislative Consideration
• Transportation
• Proposal
• Issues for Legislative Consideration
• Resources
• Proposal
• Issues for Legislative Consideration