State Fiscal Condition
Full Report
Executive Summary
Press Release
Fact Sheet
Study Description
Agenda
Overview
This report examines the State's fiscal condition and urges policy makers to make eliminating California's structural deficit and improving the State's credit ratings a top priority. While policy makers in the past have addressed tough budget choices with creativity, they have not been able to break the repeated cycles of short-term borrowing that have driven the State's credit rating down and its overall costs up.
The Commission offers four recommendations for future action, which include crafting a budget that is based on reasonable and sustainable estimates of revenues, federal reimbursements and debt obligations; focusing on a realistic cash flow plan; cutting programs as deeply as necessary to end the 1995-96 fiscal year in a balanced position; and adopting long-term plans, budgets and policies that California's budgets will be balanced in reality and not through financial maneuvers.

