Analysis of the 2008-09 Budget Bill
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LA O Analysis of the 2008-09 Budget Bill Legislative Analyst’s Office February 2008 www.lao.ca.gov
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Analysis of the 2008-09 Budget Bill. Legislative Analyst’s Office February 2008. www.lao.ca.gov. Key LAO Findings. Lower Revenues Larger Budget Problem Structural Shortfall After 2008-09 Failure to Set Priorities. 1. Taxable Sales Growth to Trail Personal Income. - PowerPoint PPT Presentation
Transcript of Analysis of the 2008-09 Budget Bill
LAO
Analysis of the 2008-09 Budget Bill
Legislative Analyst’s Office
February 2008
www.lao.ca.gov
LAO
Key LAO Findings
Lower Revenues
Larger Budget Problem
Structural Shortfall After 2008-09
Failure to Set Priorities
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LAO
Taxable Sales Growth to Trail Personal IncomeAnnual Percentage Change
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LAO
Weakness in CaliforniaCorporate Profits ExpectedAnnual Percentage Change
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LAO
Operating Shortfalls Return After 2008-09 Under Governor’s BudgetGeneral Fund (In Billions)
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LAO
LAO Alternative
Targeted Approach to Spending
Balanced Approach Includes Revenues
Balanced Budget Through 2012-13
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LAO
Targeted Program Reductions
Core Services at Current Levels
Eliminate/Modify Ineffective Programs
Use Other Funding Sources for Services
Local Administrative Flexibility
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LAO
Better Proposition 98 Approach
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LAO
Add Revenues in a Reasonable Manner
Reduce Dependent Credit
Limit R&D Credit
Limit NOL Carryforwards
No Broad-Based Tax Rate Increases
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LAO
LAO Alternative:Other Key Elements
Rethink State Responsibilities
No Additional Borrowing or Debt
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LAO
Budgetary Reform Alternative
Build Upon Proposition 58 Reserve Framework
Rethink State’s Budgetary Formulas
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LAO
LAO Alternative:A Starting Point
Tough Decisions Ahead
Legislative Priorities Will Set Framework
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