August 10, 2000 - In recent decades the distribution of adjusted gross income reported on California tax returns has shifted significantly, with the share attributable to the top 20 percent of returns rising and that for the bottom 80 percent falling. We examine the changes in California's income distribution and their causes.
December 18, 2014 - In June 2014, the Legislature directed the LAO to prepare a report analyzing the costs, benefits, and trade-offs of various options for a state earned income tax credit (EITC) that would supplement the federal credit. This report discusses considerations for adopting a state EITC and provides three options for the Legislature's consideration.
March 15, 2018 - In this report, we explain how the existing credit works and why so few taxpayers are claiming it. Then we describe and comment on the administration’s California Hiring Credit proposal, which would improve upon the existing credit in some respects. We conclude with some options for making more fundamental changes to the credit.
January 31, 2020 - In response to concerns over K‑12 student achievement gaps, the Legislature tasked our office with convening a work group on the topic and submitting a report. The required report needed to: (1) examine data on K‑12 student achievement gaps, (2) identify funding provided for disadvantaged and low‑performing students, (3) assess existing state efforts to serve these students, and (4) develop options for better supporting these students. This report responds to these requirements.
March 17, 2015 -
Living in decent, affordable, and reasonably located housing is vitally important to every Californian. Unfortunately, housing in California is extremely expensive and, as a result, many households are forced to make serious trade-offs in order to live here. While many factors have a role in driving California's high housing costs, the most important is the significant shortage of housing in the state's highly coveted coastal communities. We advise the Legislature to address this housing shortfall by changing policies to facilitate significantly more private home and apartment building in California's coastal urban communities.
See our February 9, 2016 follow up to this report: Perspectives on Helping Low-Income Californians Afford Housing.
January 22, 2009 - At a cost of approximately $10.2 billion in 2008-09, California’s major social services provide a wide array of benefits to its citizens. The Governor proposes $3 billion in budget reductions for social services programs in 2009-10, mostly in grant payments to the aged, blind and disabled or low-income families. We present alternative approaches to reducing costs which tend to have less savings and less adverse impacts on recipients and clients. We also present approaches to drawing down more federal funds pursuant to recently enacted federal legislation.
March 6, 2019 - The state adopted an EITC in 2015 and expanded it in 2017 and 2018. The Governor proposes another expansion starting in 2019 that would (1) extend the income eligibility range to $30,000, (2) increase the credit amount for workers with dependents under age six, and (3) increase the credit amount for workers with earnings at the higher end of the current eligibility range. This report evaluates the Governor’s proposal, discusses potential alternative approaches, and examines implementation issues and options for providing credits on a monthly basis.