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4,918 Publications Found
December 5, 2016 - Presented to: California School Boards Association
December 5, 2016 - With a state as big, as populous, and as complex as California, it would be impossible to quickly summarize how its economy or state budget works. The purpose of Cal Facts is more modest. By providing various "snapshot" pieces of information, we hope to provide the reader with a broad overview of public finance and program trends in the state.
Cal Facts consists of a series of charts and tables which address questions frequently asked of our office. We hope the reader will find it to be a handy and helpful document.
December 1, 2016 - In 2014, the Legislature passed new laws intended to improve state oversight of hydraulic fracturing, or “fracking.” In this web post, we provide a progress report on the implementation of these new laws and a high-level overview of how hydraulic fracturing is used to stimulate oil and natural gas production.
November 28, 2016 - This report presents the results of our projections to inform the Legislature and stakeholders about levels of disability and the potential need for long–term supports and services (LTSS) among California’s seniors over the next several decades. These projections provide a useful starting point in understanding how California’s changing population demographics will impact the LTSS delivery system. The results presented in this report can also be built upon with further analysis focused on utilization and financing of LTSS over the long term.
A companion video and infographic highlight key findings from the report.
November 17, 2016 - Presented to: California Association of School Business Officials
November 16, 2016 - On November 16th our office released its annual Fiscal Outlook. The outlook provides our assessment of California’s budget condition through 2020-21. This post provides more details on the outlook’s estimates of constitutionally required debt payments and reserve deposits under Proposition 2.
November 16, 2016 - Under our current projections, assuming no changes in existing state and federal policies, we estimate the state will end the 2017-18 fiscal year with $11.5 billion in total reserves. This includes $8.7 billion in required reserves, which must be deposited into the rainy day fund, and $2.8 billion in discretionary reserves, which the Legislature can appropriate for any purpose. These reserve levels reflect the continued progress California has made in improving its budget situation. Our estimates include the effects of statewide ballot measures that were approved on November 8. The condition of the state budget depends on many volatile and unpredictable factors. This uncertainty is present in the near term and becomes greater in each subsequent year. We discuss two illustrative economic scenarios for the fiscal years after 2017-18. Under a mild recession scenario, the state would have enough reserves to cover its operating deficits through 2020-21. This means, under our assumptions, the state could weather a mild recession without cutting spending or raising taxes. However, this conclusion assumes that the state does not make any changes to its current policies and programs in any year during the outlook. This outlook also assumes no changes in federal policy, even though the recent election results suggest some such changes are now likely. State or federal policy changes could have a significant impact on the state's bottom line.
November 10, 2016 - Los Angeles, Budapest, and Paris are competing to host the 2024 Olympic and Paralympic Games. The International Olympic Committee will choose the winning city in September 2017. Both the state and the City of Los Angeles are already planning in case the Games return to Southern California. Earlier this year, the Legislature passed a bill to provide state support for Los Angeles' bid. Under that bill, the Governor is allowed to negotiate a contract with Games organizers for the state to provide no more than $250 million of back-up financial support if the 2024 Los Angeles Olympics end with a financial shortfall. The current Los Angeles bid greatly reduces the risk of shortfalls by relying on existing facilities, thereby minimizing the risk of large cost overruns that have plagued many prior Olympic hosts. We advise the Legislature, through its oversight process, to help Games organizers keep costs and financial risks as low as possible. This report notes issues that the state may need to consider as planning for the Games proceeds.
Also see our March 23, 2017 report Update on Los Angeles’ Bid for the 2024 Olympics.
November 1, 2016 - Presented to Senate Human Services Committee
October 5, 2016 - On June 22, 2016, the President signed the Frank R. Lautenberg Chemical Safety for the 21st Century Act. The new law implements significant reforms to the federal Toxic Substances Control Act. Under the new law, U.S. EPA will have greater authority to evaluate and regulate existing chemicals, as well as new chemicals proposed to be brought to the market. In addition to providing EPA with more authority to enforce restrictions on chemicals, the new law places greater limits on the authority of states to enforce their own laws and regulations restricting the use of chemicals. In the long-run, it is quite possible that the new federal law—and specifically the preemption provisions—could significantly affect California’s chemical safety programs and the implementation of current and future state restrictions.
October 5, 2016 - Each year, the Legislative Analyst’s Office publishes the California Spending Plan to summarize the annual state budget. This publication discusses the 2016–17 Budget Act and other major budget actions approved during 2016. Unless indicated otherwise, figures and dollar amounts generally refer to budget actions passed as part of the June 2016 budget package, as signed into law on June 27 and July 1, 2016. In some cases, as noted, we discuss later budget actions approved during August 2016 by the Legislature. During August, for example, the Legislature and the Governor agreed to spend certain cap–and–trade funds. The budget totals include $400 million (General Fund) for affordable housing even though the Legislature and Governor have not reached agreement on this spending.
This year's California Spending Plan includes an interactive graphic to help the reader visualize how the state budget spent $167 billion in total state revenues.
September 30, 2016 - Due to a variety of factors, the state's Unemployment Insurance (UI) trust fund exhausted its reserves in 2009, requiring the state to take on loans to continue the payment of benefits to unemployed workers. In this series of four online posts, we (1) examine the current condition of the UI trust fund and how it may change in the near future, (2) provide context on who pays UI taxes and how much they pay, (3) assess the extent to which the UI trust fund is prepared for the next economic downturn, and (4) look at potential steps the Legislature could take should it wish to increase reserves in the trust fund as a means to address the fiscal impacts of the next economic downturn.
Update 6/13/17:
Post 1 updated to reflect estimates in the 2017-18 May Revision.
Update 1/20/17:
Post 1 updated to reflect estimates in the 2017-18 Governor's Budget.
September 29, 2016 -
In this report, as required by law, we evaluate the economic effects and the administration of the first film tax credit program passed in 2009. We find that about one–third of the film and television projects receiving incentives under this program would probably have been made in California anyway. We suspect that this level of “windfall benefits” to some credit recipients may be low compared to other tax credits, which would suggest that the first film tax credit program targeted the types of production vulnerable to being filmed outside the state relatively well.
Also see these four short videos that highlight findings from this report.
September 27, 2016 - Chapter 12 of 2009 (AB4X 12, Evans) created the California National Guard Education Assistance Award program as part of the 2009-10 budget package. The program provides financial aid to members of the California National Guard and the State Military Reserve to pay for postsecondary education. The legislation sunsets the program July 1, 2019 and requires our office to review the program prior to this sunset. Because the Military Department does not track certain data, we were unable to evaluate whether the program is helping the department retain members with critical skills or whether it is increasing the number of members enrolled in postsecondary education or increasing the units they take. Given the available data does not show that the program is effective at retaining members or increasing their skills and education, we recommend allowing it to sunset. Because the program’s ineffectiveness appears to stem in part from a lack of a clear focus, we recommend the Legislature consider as a next step developing a more thorough understanding of the Military Department’s most pressing personnel problem and identifying a new solution tailored to that specific problem. Though the evidence does not support extension of the existing version of the program, we also suggest several modifications for the Legislature to consider if it decides to continue the program.
September 22, 2016 - In this report, we provide background on the Student Success and Support Program, student equity, and other student success programs of the California Community Colleges (CCC). As background, we consider the effects of recent actions taken by the CCC Board of Governors, including setting minimum academic standards for fee waivers and establishing new policies for registration. We next discuss implementation of student success and equity programs. We conclude with an assessment of implementation to date and offer recommendations for legislative consideration.