S.E.C. RULE 15c2-12
ANNUAL REPORT
FISCAL YEAR ENDED JUNE 30, 2008
The State of California (the "State") hereby provides its annual report for the fiscal year ended June 30, 2008, in connection with the following: Bond Issue Date of Continuing Disclosure Certificate 5/11/04 6/16/04 2/14/08
Name of Issue State of California Economic Recovery Bonds, Series 2004A and Series 2004B (the “2004A/B Bonds”) State of California Economic Recovery Bonds, Series 2004C (together with the 2004A/B Bonds, the “2004 Bonds”) State of California Economic Recovery Bonds, Series 2008A and Series 2008B (the “2008 Bonds”) The base CUSIP number for the bonds listed above is 13067J - _ _ _.
Dated Date 5/11/04 6/16/04 2/14/08
Note: The base CUSIP number provided is for the convenience of Bondholders. The State Treasurer’s Office is not responsible for the accuracy or completeness of such numbers. Capitalized terms used in this Report have the meanings set forth in the respective Continuing Disclosure Certificates or in the Official Statement for the respective series of Bonds. Annual Report The State’s "annual report" (as defined in the Continuing Disclosure Certificates for the Bonds) for the fiscal year ended June 30, 2008, consists of: 1. As required by Section 4(1) of the Continuing Disclosure Certificates for the 2004 Bonds and Section 4(a) of the Continuing Disclosure Certificate for the 2008 Bonds, the Audited Basic Financial Statements of the State for the year ended June 30, 2008, are set forth in Exhibit 2 attached hereto. As required by Sections 4(4) and (5) of the Continuing Disclosure Certificates for the 2004 Bonds and Sections 4(d) and (e) of the Continuing Disclosure Certificate for the 2008 Bonds, Financial information contained in Appendix A is incorporated herein attached as Exhibit 3. The Appendix A as attached is an appendix to the Official Statement, dated March 25, 2009, with respect to State of California Various Purpose General Obligation Bonds.
2.
3.
The following information is required by Section 4(3) of the Continuing Disclosure
Certificates for the 2004 Bonds and Section 4(c) of the Continuing Disclosure Certificate for the 2008 Bonds: $1,398,874,168.23 in Special Sales Tax Revenues was collected from July 1, 2007 through June 30, 2008. Actual Debt Service Coverage for the period ending June 30, 2008 was 1.86. For the period ending June 30, 2008, $1,732,605,000 of Economic Recovery Bonds were retired from transfers from the Budget Stabilization Account and proceeds from the sale of State surplus property. 4 Updated tables as required by Section 4(2) of the Continuing Disclosure Certificates for the 2004 Bonds and Section 4(b) of the Continuing Disclosure Certificate for the 2008 Bonds are set forth in Exhibit 1 attached hereto.
Other Matters This annual report is provided solely for purposes of the Continuing Disclosure Certificates. The filing of this report does not constitute or imply any representation (i) that all of the information provided is material to investors, (ii) regarding any other financial, operating or other information about the State or the Bonds, or (iii) that no changes, circumstances or events have occurred since the end of the fiscal year to which this report relates (other than as referred to in this report), or that no other information exists, which may have a bearing on the State's financial condition, the security for the Bonds, or an investor's decision to buy, sell, or hold the Bonds. The information contained in this report has been obtained from sources which are believed to be reliable, but such information is not guaranteed as to accuracy or completeness. No statement in this annual report should be construed as a prediction or representation about future financial performance of the State. Dated: March 27, 2009 State of California
By_________________________________ Deputy Treasurer For California State Treasurer Bill Lockyer
Exhibit 1
Population Growth in California 1990-2008
July 1 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Population 29,828,000 30,459,000 30,987,000 31,314,000 31,524,000 31,712,000 31,963,000 32,453,000 32,863,000 33,419,000 34,095,000 34,767,000 35,361,000 35,944,000 36,454,000 36,899,000 37,298,000 37,713,000 38,148,000
Change From Previous Year 686,000 631,000 528,000 327,000 210,000 188,000 251,000 490,000 410,000 556,000 676,000 672,000 594,000 583,000 510,000 445,000 399,000 415,000 435,000
Annual Growth 2.35% 2.12% 1.73% 1.06% 0.67% 0.60% 0.79% 1.53% 1.26% 1.69% 2.02% 1.97% 1.71% 1.65% 1.42% 1.22% 1.08% 1.11% 1.15%
Source: U.S. Department of Commerce, Bureau of the Census, Population Estimates Program, and the California Department of Finance estimates.
Taxable Sales and Pro Forma Special Sales Tax Revenues (fiscal years 1994-95 through 2009-10) Pro Forma and Projected Special Sales Tax Revenues (in thousands)(1) 732,668 780,411 822,051 875,429 932,485 1,050,879 1,118,692 1,092,495 1,119,766 1,200,163 1,163,025 (2)(3) 1,402,496 (2) 1,411,392 (2) 1,397,000 (5)(6) 1,315,000 (5)(6) 1,321,000 (5)(6)
Fiscal Year Ended June 30 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Taxable Sales (in thousands) 293,067,153 312,164,409 328,820,504 350,171,458 372,994,015 420,351,635 447,476,763 436,998,016 447,906,207 480,065,020 515,298,184 553,519,835 564,836,872 552,285,122 513,379,370 506,728,380
(4) (6) (6)
(1) Pro Forma Special Sales Tax Revenues in fiscal years ended 1995 - 2004 are calculated as 1/4 of 1 percent of taxable sales. Amounts may not precisely equal 1/4 of 1% of taxable sales due to independent rounding. (2) Actual (3) Cash collections from partial year commencing August 13, 2004 through June 30, 2005. (4) Preliminary estimate based on actual sales data for the 1st and 2nd quarters and actual cash receipts for the 3rd and 4th quarters. (5) Amounts are projected based on a forecast of taxable sales and include Department of Finance adjustments, including refunds, accounts receivable collections, and legislative changes. (6) Estimates from the 2009-10 Governor's Budget released on January 10, 2009.
Taxable Sales by Major Sector (1970 through calendar year ending December 31, 2007)
Calendar Year Ending December 31 1970 1980 1990 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Apparel 4.3% 3.3% 3.7% 3.3% 2.9% 2.9% 3.0% 3.2% 3.3% 3.4% 3.5% 3.5% 3.7%
General Merch. 22.9% 17.9% 17.3% 16.3% 16.1% 15.5% 15.9% 16.2% 16.1% 15.6% 15.3% 15.4% 15.6%
Specialty Merch. 8.4% 9.6% 12.2% 14.1% 13.9% 13.9% 13.0% 12.7% 12.5% 12.4% 12.3% 12.3% 12.3%
Drinking & Eating 9.6% 9.5% 10.1% 10.2% 10.0% 9.7% 10.0% 10.3% 10.3% 10.2% 10.2% 10.4% 10.8%
Transportation 17.3% 15.9% 17.4% 18.1% 19.0% 19.4% 20.5% 21.3% 21.0% 20.4% 19.7% 18.8% 17.7%
Building 12.7% 13.0% 13.2% 11.9% 12.3% 12.2% 12.7% 12.9% 13.2% 14.2% 14.3% 14.1% 13.3%
Services 3.1% 3.2% 5.0% 5.8% 5.6% 5.5% 5.4% 5.0% 4.7% 4.3% 4.1% 4.0% 4.0%
Manufacturing Agri-culture 12.7% 1.1% 13.4% 1.4% 13.0% 1.2% 13.5% 1.2% 13.0% 1.1% 13.2% 1.0% 12.0% 1.0% 11.1% 1.0% 10.6% 1.0% 10.7% 1.1% 10.9% 1.1% 11.1% 1.2% 11.5% 1.1%
Fuel 8.1% 12.8% 6.9% 5.8% 6.1% 6.8% 6.6% 6.3% 7.2% 7.8% 8.6% 9.3% 10.0%
Taxable Sales in the Top Ten Counties (fiscal years ending June 30, 1999 through 2007) ($ in thousands)
Rank County 1 Los Angeles 2 3 4 5 6 7 8 9 10 Orange San Diego Santa Clara San Bernardino Riverside Alameda Sacramento Contra Costa San Francisco Top 10 County Total Total Taxable Sales Top 10 as a % of Total Taxable Sales average socal average norcal statewide 1998-99 $93,051,927 38,437,228 30,957,032 28,140,513 15,852,872 14,031,503 19,641,497 14,026,269 10,723,708 11,556,144 $276,418,693 $372,994,015 74.1% 1999-00 $102,742,762 10.4% 42,553,609 10.7% 34,586,860 11.7% 33,843,217 20.3% 17,885,700 12.8% 16,131,902 15.0% 22,328,105 13.7% 15,926,356 13.5% 11,736,464 9.4% 13,403,319 16.0% $311,138,294 $420,351,635 74.0% 2000-01 $107,570,926 4.7% 45,057,850 5.9% 37,093,272 7.2% 36,597,963 8.1% 19,376,056 8.3% 17,585,745 9.0% 23,817,120 6.7% 16,994,534 6.7% 12,474,153 6.3% 13,721,570 2.4% $330,289,189 $447,476,763 73.8% 2001-02 $107,238,290 -0.3% 44,207,950 -1.9% 37,981,561 2.4% 28,974,350 -20.8% 20,050,622 3.5% 18,774,610 6.8% 21,696,871 -8.9% 17,377,311 2.3% 12,183,501 -2.3% 11,684,354 -14.8% $320,169,420 $436,998,016 73.3% 2002-03 $110,992,734 3.5% 45,908,071 3.8% 39,523,203 4.1% 26,654,555 -8.0% 21,753,274 8.5% 20,434,075 8.8% 21,112,271 -2.7% 17,902,503 3.0% 12,045,543 -1.1% 11,428,531 -2.2% $327,754,760 $447,906,207 73.2% 2003-04 $118,041,687 6.4% 49,756,671 8.4% 42,881,287 8.5% 27,906,947 4.7% 24,120,368 10.9% 23,424,811 14.6% 22,255,564 5.4% 19,352,477 8.1% 12,563,534 4.3% 11,901,677 4.1% $352,205,023 $480,065,020 73.4% 2004-05 $126,061,356 6.8% 53,100,976 6.7% 45,485,177 6.1% 28,878,335 3.5% 27,890,904 15.6% 26,646,380 13.8% 23,394,276 5.1% 20,662,020 6.8% 13,185,575 5.0% 12,477,513 4.8% $377,782,512 $515,298,184 73.3% 2005-06 $134,349,828 6.6% 56,395,573 6.2% 47,468,079 4.4% 31,623,873 9.5% 31,212,132 11.9% 29,646,438 11.3% 24,949,557 6.6% 21,496,580 4.0% 13,721,927 4.1% 13,459,636 7.9% $404,323,623 $553,519,835 73.0% 2006-07 $137,934,214 2.7% 57,900,056 2.7% 47,957,405 1.0% 33,131,466 4.8% 31,110,107 -0.3% 29,699,491 0.2% 25,592,761 2.6% 21,074,824 -2.0% 14,097,916 2.7% 14,296,583 6.2% $412,794,823 $564,836,872 73.1%
12.1% 14.6% 12.7%
7.0% 6.0% 6.5%
2.1% -8.9% -2.3%
5.7% -2.2% 2.5%
9.7% 5.3% 7.2%
9.8% 5.0% 7.3%
8.1% 6.4% 7.4%
1.2% 2.9% 2.0%
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