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Evaluating State Economic Stimulus Proposals


Report

A Framework for Evaluating State-Level Green Stimulus Proposals

January 5, 2021 - This report is intended to provide guidance for the Legislature on how to evaluate the merits of state-funded green stimulus proposals. When reviewing such proposals, the Legislature faces two basic questions to evaluate whether they are worth pursuing: (1) what effects is the proposal likely to have on certain short-term economic conditions, such as employment and economic output; and (2) what short- and long-term environmental benefits could the proposal achieve?

Report

Cap-and-Trade Revenues: Strategies to Promote Legislative Priorities

January 21, 2016 - In this report, we describe and assess the relationship—from both a legal and policy perspective—between the cap–and–trade regulation and the auction revenues that are generated as a result of the program.

Report

Evaluating Future Economic Development Program Proposals

February 18, 2004 - We recommend that the Legislature require a well-researched problem, a demonstrable net benefit, and built-in evaluations when considering any future proposals for state economic development programs. This would allow the Legislature to be more certain of the effectiveness of proposed programs.

Report

The 2017-18 Budget: Cap-and-Trade

February 13, 2017 - In this report, we provide comments and recommendations related to the Governor’s proposal. We recommend the Legislature authorize cap-and-trade (or a carbon tax) beyond 2020. If the Legislature approves cap-and-trade, we recommend the Legislature strengthen the allowance price ceiling and provide clearer direction to ARB regarding the criteria that the board should use to determine whether a complementary policy should be adopted. We also recommend the Legislature approve cap-and-trade (or carbon tax) with a two-thirds vote because it would provide greater legal certainty and ensure ARB has the ability to design an effective program. With a two-thirds vote, we recommend the Legislature broaden the allowable uses of auction revenue because it would give the Legislature flexibility to use the funds on its highest priorities. When finalizing its 2017-18 cap-and-trade spending plan, we recommend the Legislature (1) reject the administration’s proposed language making spending contingent on future legislation, (2) consider alternative strategies for dealing with revenue uncertainty, and (3) allocate funds to specific programs rather than providing DOF that authority.

Report

Assessing California’s Climate Policies—Transportation

December 21, 2018 - Chapter 135 of 2017 (AB 398, E. Garcia) requires our office to annually report on the economic impacts and benefits of California’s statutory greenhouse gas (GHG) emission goals—statewide emissions to 1990 levels by 2020 and to 40 percent below 1990 levels by 2030. This report provides our assessment of the effects, of major policies in the transportation sector intended to help meet these goals, as well as identifies some key issues for the Legislature to consider as it makes future policy and budget decisions. In a companion report, Assessing California’s Climate Policies—An Overview, we describe the general types of economic effects of state climate policies, key challenges in measuring these effects, and broad issues for the Legislature to consider when designing and evaluating its climate policies.

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[PDF] Review of the California Competes Tax Credit

October 31, 2017 - California Competes awards income tax credits to attract or retain businesses considering a significant new investment in California. In this report, we reviewed California Competes’ experience to date in meeting the Legislature’s goals for the program.

Other

AB32: Analysis of the Net Impact On California Jobs

March 4, 2010 - This responds to Senator Cogdill's request for an analysis of the net impact on jobs in California that would occur as a result of the implementation of AB 32 (Núñez), the Global Warming Solutions Act of 2006, Chapter 488, Statutes of 2006. In our response, we briefly summarize the basic provisions of AB 32 and its planned implementation through the California Air Resources Board’s (CARB’s) Scoping Plan (SP), discuss the avenues by which the SP would potentially affect California jobs, and present the jobs-related effects of the SP as estimated by CARB. We then comment on CARB’s analysis and offer our own view about how the SP might affect jobs.

Hearing Handout

[PDF] The Governor's Tax Proposal

March 1, 1995 - The 1995-96 Governor's Budget proposes a 15 percent across-the-board income tax cut for both corporations and individuals, along with maintaining the high-income tax rates scheduled to sunset in 1996. The plan's stated purpose is to reduce the tax burden on individuals and businesses in California so as to stimulate business location and expansion in the state, thereby improving the economy.

Hearing Handout

[PDF] AB32: Letter to Assembly Member Dan Logue Regarding Evaluation of the ARB's Updated Economic Analysis

June 16, 2010 - This responds to Assembly Member Logue's request that we provide an evaluation of the updated economic analysis prepared by the California Air Resources Board of its Scoping Plan for implementing AB 32 (Núñez).

Report

[PDF] The 2014-15 Budget: Cap-and-Trade Auction Revenue Expenditure Plan

February 24, 2014 - In order to minimize the negative economic impact of cap-and-trade, it is important that auction revenues be invested in a way that maximizes GHG emission reductions for a given level of spending. In reviewing the Governor's proposed expenditure plan, we find that there is significant uncertainty regarding the degree to which each investment proposed for funding will achieve GHG reductions. This uncertainty is the result of several factors, including there being only limited data and analysis provided by the administration, as well as the fact that the level of emission reductions achieved would depend on the specific projects funded by departments. Given these concerns, we recommend that the Legislature direct ARB to develop metrics for departments to use in order to prospectively evaluate the potential GHG emission benefits of proposed projects, as well as direct the board to establish a set of guidelines for how departments should incorporate these metrics into their decision making processes.

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Administration’s Cap-and-Trade Report Provides New Information, Raises Issues For Consideration

April 15, 2016 - In March, the administration released its annual report on cap-and-trade spending outcomes. In this post, we summarize the information included in the report and, based on our review of the information, identify issues for legislative consideration.

Report

Assessing California’s Climate Policies—Electricity Generation

January 6, 2020 - In this report, we assess the effects of the state’s major policies intended to reduce emissions from the generation of electricity.

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The 2019-20 May Revision: Opportunity Zones

May 11, 2019 - The Governor proposes to allow state tax benefits for investments in alternative energy or affordable housing in communities designated as Opportunity Zones under a new federal program. Given the mixed evidence regarding the benefits of similar policies and the existence of better mechanisms to fund affordable housing, we recommend rejecting the Governor’s proposal to create a state Opportunity Zone tax benefit.