The 2019-20 May Revision: Update to Governor's 1991 Realignment Proposals

May 29, 2019 - Continue practice of treating Yolo County as non ‑CMSP county for purposes of the redirection and increase redirection to 75 percent. Yolo County proposed to be treated as CMSP county for purposes of the redirection.
https://lao.ca.gov/Publications/Report/4077

Cannabis Tax Revenue Update [EconTax Blog]

May 23, 2019 - Cannabis Tax Revenue Update [EconTax Blog] Seth Kerstein In November 2016, California voters approved Proposition 64 , which legalized the nonmedical use of cannabis. The state levies two excise taxes on cannabis: a retail excise tax and a cultivation tax.
https://lao.ca.gov/LAOEconTax/Article/Detail/376

April 2019 State Tax Collections [EconTax Blog]

May 21, 2019 - Based on April receipts, the federal tax law appears to have significantly changed the timing of PIT collections. Specifically, filers no longer have an incentive to pay a higher proportion of their state tax liability within the tax year.
https://lao.ca.gov/LAOEconTax/Article/Detail/375

Amid Good Fiscal Times, Planning for the Future Is Crucial

May 21, 2019 - The most immediate effect of IPOs on state tax revenues is in the personal income tax from wage withholding —in particular, from the newly public companies ’ vesting of their restricted stock units. Proposition  2, which establishes rules for mandatory reserve deposits, includes a provision that captures surging capital gains-related tax revenues.
https://lao.ca.gov/Publications/Report/4051

Amid Good Fiscal Times, Planning for the Future Is Crucial [Publication Details]

May 21, 2019 - Later, when the economy and tax receipts weaken, the state can draw upon its accumulated savings to fund a spending level above what revenues would otherwise support. Exercising spending restraint during good times promotes fiscal sustainability and dampens the need for austerity in subsequent recessions, thus, facilitating policy stability.
https://lao.ca.gov/Publications/Detail/4051

The 2019-20 Budget: May Revision Multiyear Budget Outlook

May 17, 2019 - This primarily reflects slower projected growth in General Fund revenue and faster growth in local property tax revenue compared to previous outlooks. This slower growth in school spending contributes to the budget ’s better condition.
https://lao.ca.gov/Publications/Report/4050

The 2019-20 May Revision: Analysis of the Governor’s January and May Mental Health Workforce Proposals

May 16, 2019 - In 2018 ‑19, counties are receiving $9.3  billion in funding for community mental health services. About half of funding for county mental health services is provided by the state through block grants that grow on an annual basis in line with state tax revenues.
https://lao.ca.gov/Publications/Report/4049

Governor’s May Revision Update: Health Insurance Affordability Proposals [Publication Details]

May 15, 2019 - With the May Revision (and prior to the May Revision with the release of proposed implementing legislation), the administration has provided additional details on its January proposal to impose a state individual mandate and use penalty revenues from the mandate to fund health insurance subsidies.
https://lao.ca.gov/Publications/Detail/4047

Governor’s May Revision Update: Health Insurance Affordability Proposals

May 15, 2019 - However, because households required to pay the penalty will not do so until early 2021 (when state income taxes are filed for 2020), the state General Fund would cover the cost of subsidies provided in 2019 ‑20, as shown in Figure 2.
https://lao.ca.gov/Publications/Report/4047

The 2019-20 May Revision: Analysis of the May Revision Education Proposals

May 15, 2019 - Under current law, families in Stage 1 child care transfer to Stage 2 when the county deems them stable. (Every county has its own definition of stability.) The May Revision proposes that a family receive Stage 1 child care for at least twelve months before being transferred to Stage 2 child care.
https://lao.ca.gov/Publications/Report/4048