LAO Analysis of the 1996-97 Budget Bill
Perspectives and Issues Table Of Contents

Part One

State Fiscal Picture (HTML)

• Overview of the Governor's Budget
• The Governor's Budget Proposal
• The LAO's Budget Outlook

Part Two

Perspectives on the Economy (HTML)

• 1995 Economic Performance in Retrospect
• The Budget's Economic Forecast in Brief
• The LAO's Outlook for the Economy
• Comparison of Recent Economic Forecasts
• Key Risks to the Outlook

Part Three

Perspectives on State Revenue (HTML)

• Perspectives on State Revenue
• The General Fund Revenue Outlook
• The LAO Forecast for Major Revenue Sources
• The LAO Forecast in Perspective
• The Budget Forecast for Special Fund Revenues

Part Four, Part A

An Overview of State Expenditures (HTML)

• Proposed Spending in the Current Year and 1996-97
• State Spending Trends
• Proposed Spending by Program Area
• Budget Proposals That Require Legislation or Federal Action

Part Four, Part B

Major Expenditure Proposals in the 1996-97 Budget (HTML)

• Welfare Grant Reductions and Reforms
• Medi-Cal
• Proposition 98
• Higher Education
• Department of Corrections
• Trial Court Funding
• Transportation
• Capital Outlay

Part Five: Major Issues Facing the Legislature

• Summary
• Introduction
• Why Is the Governor Proposing a Tax Reduction?
• How Does California's Tax Environment Compare to Other States?
• Specific Features of the Governor's Tax Proposal
• Factors to Consider in Evaluating the Proposal
• Fiscal and Economic Effects of the Proposal
• Should Alternative Tax Proposals Be Considered?

• Summary
• Introduction
• The State's System of Government
• Counties Have Limited Control Over Expenditures
• County Revenues Constrained By Statute and Constitution
• Implications of Limited County Fiscal Flexibility

• Summary
• Introduction
• Which Proposals Affect Counties?
• Check-Off for Public Safety
• General Assistance
• Trial Court Funding

• Summary
• Introduction
• Most Federal Spending Is Outside the State Budget
• Federal Funds in the State Budget
• The "Countercyclical" Role of Federal Funds
• Interrelated State and Federal Programs
• Proposals to Balance the Federal Budget
• Issues for California
• Conclusion

• Summary
• Introduction
• Impediments in Current Law to Effective Recruiting/Hiring
• Recommendations

• Summary
• Introduction
• The Scope and Diversity of Privatization Activities
• Privatization in California State Government
• How Should Privatization Decisions Be Approached?
• Conclusion