Finance Bulletin

June 2005

Economic Update

California passed a notable milestone in May.  Total industry employment set a new record by surpassing the previous peak employment level reached just before the 2001 recession.  With nonfarm employment reaching a new high of 14,738,600, the state has recaptured all of the jobs lost during the last economic downturn.  Moreover, California enjoyed broad-based job growth both regionally and industrially in May. 

New Employment Record

Monthly Cash Report

Preliminary General Fund agency cash for May was $390 million above the 2005-06 May Revision forecast of $5.101 billion.  While this appears to be a real gain—rather than reflecting variations in short-term cash-flow, how much of this can be expected to be ongoing, in the sense that these increased payments would be repeated in the future, is unknown.  A portion of this month's gain was attributable to amnesty payments which are clearly one-time receipts and another portion is attributable to a prior tax year for which most of the revenue has now been received.


General Fund Agency Cash
 2005-06 May Revision 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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