Finance Bulletin

March 2005

Economic Update

California labor markets continued to improve in January and February, but the new statistics require some interpretation. Housing markets set new sales and price records in January. Residential construction started off slowly, but nonresidential construction surged ahead. State and local payroll employment estimates have undergone their annual benchmark revisions. Upward revisions were concentrated in the San Joaquin Valley, the Sacramento MSA, and Southern California. Most of the downward revisions were in the San Francisco Bay Area. For the state as a whole, the revision was upward. In addition to the revisions, a new method has been implemented by the Federal Bureau of Labor Statistics for estimating labor force statistics used to calculate state and local unemployment rates. As a result, estimates of state and local unemployment rates may have breaks in them. That is, the new estimates may be noticeably higher or lower than estimates made last year with the old methodology. New definitions of metropolitan areas have also been adopted.

Better Employment Picture for 2004

Monthly Cash Report


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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