FRED SILVA SR. FISCAL POLICY ADVISOR

THINKING AHEADABOUT THE FUTURE OFSTATE & LOCAL

FINANCE

WHAT IS CA FWD? The California

EndowmentThe Haas, Jr. FundThe Hewlett FoundationThe Irvine

FoundationThe Packard Foundation

5 foundations

to reshape the future of CAby changing the way ourgovernment

operates

2013-14STATEBUDGET

MODERATE GROWTHpersonal incomelabor force

unemployment

2013-14STATEBUDGET

MODERATE GROWTHpersonal incomelabor force

unemployment

CHANGING COMPOSITION & “BALANCE”2010-112013-14

FISCAL YR

GENERAL FUND

SPECIAL FUNDS

73%58%

27%42%

2013-14STATEBUDGET

MODERATE GROWTHpersonal incomelabor force

unemployment

BALANCEprojected

general funds

revenues

proposedspending

special funds (42%)

LONG-TERM OBLIGATIONS

wall of debt

debt servicepensions

LOCAL FINANCEgeneral purpose revenues have changed property tax

base annual growth has

declined

property tax/VLF

swap has increased

local revenues

LOCAL FINANCEdecline in annual property tax growth property tax

base annual growth has

declined

South Bay Cities pre-recession growth: 5-7%/yr South Bay Cities current growth: 2.4%/yr

property tax/VLF

swap has increased

local revenues

general purpose revenues have changed

FUTURE CHALLENGESmatching revenues with responsibilityincreasing transparency

bolstering state reserveslocal gov’t

state gov’t

CAFWD.ORGCAECONOMY.ORG