May 20, 2020 - The May Revision includes a number of revenue-related proposals. This post describes these proposals and offers our initial comments and recommendations. We also offer alternative revenue options that the Legislature could consider.
January 26, 2022 - This 2022-23 budget post provides background on temporary limits on the use of net operating loss deductions and business tax credits. It describes the Governor’s proposal to lift these limits one year early and provides some comments to the Legislature.
May 12, 2019 - In the May Revision, the Governor has proposed two new sales tax exemptions that would go into effect on January 1, 2020 and expire on December 31, 2021: one for menstrual products and another for children’s diapers. These exemptions would apply to the full amount of the state and local sales tax. The Governor’s proposal would require our office to submit reports evaluating these exemptions by January 1, 2021.
March 23, 2020 - In this budget analysis brief, we provide background information on the current tax expenditure and assess the merits of the administration’s proposal to expand it. We conclude that the Legislature should reject the Governor’s proposal. We further suggest the Legislature reconsider the current exemption.
October 17, 2019 - This post describes the 2019-20 budget actions changing state individual and business tax provisions (partial tax conformity).
September 23, 2021 - This post discusses features of the state's spending plan that were not covered elsewhere in the 2021-22 Spending Plan series.
January 28, 2021 - The Governor’s budget proposes several changes to taxation to support businesses. Two key factors for evaluating these proposals are: (1) which level of government would forgo revenue; and (2) which businesses would receive assistance. Based on these criteria and others, we recommend that the Legislature prioritize expansion of the Main Street credit, explore alternative structures for an elective S Corporation tax, and reject the proposed one-time expansions of the CAEATFA exclusion and California Competes.
January 10, 2021 - This report provides a brief summary and initial assessment of the proposed 2021-22 Governor’s Budget.
Correction 1/11/21: Totals for immediate and early action proposals have been corrected.
January 22, 2021 - This handout provides an overview of the Governor's budget proposal to provide a one-time $600 refund to certain low-income workers, evaluates the Governor's proposal, and provides a more targeted alternative for the Legislature to consider.
January 26, 2021 - Presented to: Senate Budget and Fiscal Review Subcommittee No. 4 On State Administration and General Government (Hon. Anna M. Caballero, Chair)
February 20, 2008 - 2008-09 Budget: Perspectives and Issues
May 21, 2020 - Assembly Budget Subcommittee No. 4 on State Administration
April 13, 2021 - The federal American Rescue Plan (ARP) that passed on March 11 expanded a number of federal income tax credits. This piece will briefly describe the changes to three credits that apply to many lower-income and middle-income filers: the Earned Income Tax Credit (EITC), the Child Tax Credit (CTC), and the Child and Dependent Care Expenses Credit (“child care credit”). We also discuss changes to the dependent care exclusion which is linked to the child care credit.