The 2018-19 Budget: California's Fiscal Outlook

Nov 15, 2017 - The near-term budget outlook is positive. Under our current estimates, the state would have $19.3 billion in total reserves (including $7.5 billion in discretionary reserves) at the end of 2018-19, assuming the Legislature makes no additional budget commitments. The Legislature can use discretionary resources to build more budget reserves, increase spending, and/or reduce taxes.
https://lao.ca.gov/Publications/Report/3718/1

The 2018-19 Budget: California's Fiscal Outlook

Nov 15, 2017 - California, for example, may be disproportionately affected by proposed changes to the state and local tax deduction, but the state ’s economy also could benefit from other parts of the plan. Changes to the federal tax code also could affect the administration of state tax laws, and this could lead to proposals for legislation to conform California ’s tax laws to some of the federal changes.
https://lao.ca.gov/Publications/Report/3718

The 2018-19 Budget: California's Fiscal Outlook [Publication Details]

Nov 15, 2017 - The Legislature can use discretionary resources to build more budget reserves, increase spending, and/or reduce taxes. We also estimate the Legislature will have $5.3 billion in uncommitted school and community college (Proposition 98) funds to allocate in 2018-19.
https://lao.ca.gov/Publications/Detail/3718

Fiscal Outlook: Developmental Services

Nov 15, 2017 - Sonoma DC in Sonoma County is scheduled to close at the end of 2018, while Fairview DC in Orange County and the general treatment area (GTA) of Porterville DC in Tulare County are scheduled to close at the end of 2021.
https://lao.ca.gov/Publications/Report/3717

Fiscal Outlook: Medi-Cal

Nov 15, 2017 - Expiration of Managed Care Organization (MCO) Tax Current MCO Tax. The current MCO tax is assessed on a large number of managed care plans in the state. Revenues from the MCO tax, which leverage federal funding for Medi-Cal, provide a substantial General Fund offset —an estimated $1.8  billion in 2017-18.
https://lao.ca.gov/Publications/Report/3715

Fiscal Outlook: In-Home Supportive Services (IHSS)

Nov 15, 2017 - This increase in county contributions to IHSS costs effectively decreases our projected state share of cost for the IHSS program by hundreds of millions of dollars annually. Restoration of the IHSS Service Hours Previously Reduced by 7  Percent Tied to Managed Care Organization (MCO) Tax Existence.
https://lao.ca.gov/Publications/Report/3712

The 2017-18 Budget: California Spending Plan

Oct 18, 2017 - The budget creates a new maintenance ‑of ‑effort (MOE) for counties ’ share of IHSS costs. The new MOE significantly increases counties ’ IHSS costs in 2017 ‑18 relative to 2016 ‑17. The budget provides ongoing state General Fund support and additional realignment revenue (which consists of sales taxes and vehicle license fee revenue) to partially offset this increase.
https://lao.ca.gov/Publications/Report/3694/1

The 2017-18 Budget: California Spending Plan

Oct 18, 2017 - (As seen in Step Two above, prior to 2017 ‑18, sales tax growth paid prior year cost increases.) This sales tax payment acceleration will be ongoing. Despite Additional Revenue, Counties Will Face Some Costs.
https://lao.ca.gov/Publications/Report/3694/8

The 2017-18 Budget: California Spending Plan

Oct 18, 2017 - The budget includes a $20  million one ‑time General Fund augmentation to support a four ‑year violence reduction pilot project in Orange County. In addition, the budget includes a one ‑time $11  million General Fund augmentation  to assist counties with a temporary increase in the population supervised by county probation departments due to the release of prison inmates as a result of Proposition  57.
https://lao.ca.gov/Publications/Report/3694/11

The 2017-18 Budget: California Spending Plan

Oct 18, 2017 - The General Fund view shows the user how the state spends its tax revenues over which the state has relative discretion, while the General Fund + Special Funds view arguably provides a more comprehensive look at total state spending in the budget.
https://lao.ca.gov/Publications/Report/3694/13