Workbook: g0304.xls


Notes / Method:


·         Nonzero blocks of the top level sheet ‘g0304’ display the results of calculations on supporting sheets in the same format as they appear in the SAM

·         Assumptions used to age the data were based on a reconciliation of government revenues and expenditures against known aggregate government cash flows conducted in the GovtChecks sheet of the SAM workbook


US0304 Sheet

·         Defense and non-defense contract expenditure totals come from Consolidated Federal Funds Report

·         Expenditure totals are aged to match federal expenditures in CA Budget Forecast

·         Defense contracts are allocated to industry sectors by

o        First assigning industry sectors to itemized detail in the DoD Prime Contracts report

o        Then allocating the total FY03 federal defense expenditure in proportion to the amounts assigned to each industry

·         Non-defense contract expenditures are allocated in proportion to the business services expenditure column of the industry I/O matrix

·         Allocations of federal defense and non-defense contracts to industry sectors appear in the applicable columns of the SAM

·         Social Security revenues are based on allocating ˝ the Contributions for Social Insurance line in the CA Budget Forecast in proportion to Payments to Labor line of the Industry I/O Matrix

·         Corporate Profit Tax (FTPRO) is taken from the IRS 2002 Data Book, updated by 9%, then allocated to Payments to Capital line of the Industry I/O matrix

·         Excise taxes were allocated to the applicable line items in the 1996 Summary of Federal Government Finances

·         Non-sector specific excise tax (FTDUT) was allocated on Payments to Capital for goods producing industries, only

·         Miscellaneous Federal Tax (FTMSC) is allocated on Payments to Capital, with sector-specific share of excise taxes added in[1]


CA0304 Sheet


·         Line items from Schedule 8 (Revenues) and Schedule 9 (Expenditures) of the Governor’s Budget Report were copied and pasted into the sheet

·         Expenditure items were assigned source and destination codes which used to create a pivot table that displays aggregate expenditures by funding source and expenditure sector

·         Expenditures are allocated to the Education or Business Services columns of industry I/O matrix (x-construction) for education-related and non-education-related expenditures, respectively

·         Capital Outlay expenditures were directly allocated to construction industry sectors

·         CA state wages and salaries came from Schedule 4 to the Governor’s Budget; these are assigned to expenditure categories, and allocated accordingly

·         Revenue items were assigned sector names indicating destination of taxes

·         General Fund and Special Fund revenues were aggregated by expenditure destination, then allocated to firms by payments to capital, or to households by payments to labor, respectively

·         Sales and use taxes (CTSAU) were allocated to total domestic demand for relevant categories

·         A pivot table was created to aggregate Local Assistance from Special Funds expenditures, which was used in turn to distribute CA taxes across local assistance expenditure categories


Local0304 Sheet

·         Expenditure and revenue line items from local government reports were entered and verified against totals

·         Line items were aged to reflect the passage of time from report dates to 2003.  Aging rates were chosen to balance local revenues and local expenditures.

·         Revenues were coded with source and destination information, then aggregated in a pivot table

·         Consolidated revenues were split within each revenue category between households and firms

·         Firm share of revenues were allocated on Payments to Capital from Industry I/O table

·         HH share of revenues were allocated in a separate sheet, PTAX (in the SAM notebook)

·         Local government expenditures were assigned category names, then aggregated

·         Expenditures were aggregated to industry in proportion to either the Business Services column (for noneducation expenditure) or the Education (for education expenditure) column of the Industry I/O matrix


[1] This approach was carried forward from the previous version.  Going forward, it makes more sense to include sector-specific excise taxes on the FTDUT line.