Finance Bulletin

October 2003

Economic Update

August and September yielded mixed signals for California's economy. The unemployment rate dropped to its lowest point of the year in September. Industry employment, however, slid. Home building slowed slightly in August, but is still much stronger than last year. Home sales and prices both continued to improve substantially. Nonresidential construction, on the other hand, was still weak.

Home Prices Continue to Climb

Monthly Cash Report

Preliminary General Fund agency cash for September was $2.543 billion above the 2003 Budget Act forecast of $7.263 billion. However, $2.264 billion is due to tobacco bond moneys that were received in late September, rather than in October, thereby increasing the "other revenues" category. Excluding the "other revenues" category, agency cash is $369 million above forecast for the month and $514 million above forecast year-to-date. The forecast assumed $2 billion in tobacco bond revenues in 2003-04 and because $2.264 billion was received, there is a one-time real gain from forecast of $264 million for this revenue source.

General Fund Agency Cash
2003-04 Governor's Budget Act Forecast

2003-04 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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