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?
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.
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.
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.
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.
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.
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.
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.
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).
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.
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.
November 30, 2003 - Economic theory suggests that without some form of subsidy, overall research and development (R&D) spending in society would be lower than the economically optimal level. A strong case can be made that such a subsidy is appropriate at the federal level. However, we are not aware of economic evidence which, on balance, justifies a state credit in addition to the federal credit.
October 30, 2002 - We review and assess the effectiveness and appropriateness of the Manufacturers’ Investment Credit.