Finance Bulletin

April 2005

Economic Update

California's employment picture improved during the first quarter of 2005. Commercial construction extended a healthy growth trend that stretches back to early 2004.  Home building activity, though, slowed during the first two months, and California's blistering real estate markets showed signs of moderating.

Mixed Building Activity

Monthly Cash Report

A special caution is needed in introducing news of the cash account because of the unusual effect of the amnesty program. Preliminary General Fund agency cash for March was $2.949 billion above the 2005-06 Governor’s Budget forecast of $5.345 billion.  Year-to-date, revenues are $3.317 billion higher than the $54.63 billion that was expected.  The gains are primarily due to unexpected corporation tax receipts related to amnesty, described below.

General Fund Agency Cash
 2005-06 Governor's Budget Forecast

2004-05 Comparison of Actual and Forecast 
Agency General Fund Revenues

For more information, please contact the California Department of Finance,
Room 1145, State Capitol, Sacramento, CA or call (916) 323-0648.

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