The 2019-20 May Revision: LAO Economic Outlook [Publication Details]

May 12, 2019 - Our office just released a summary of our updated state fiscal outlook for the May Revision. Our fiscal outlook is premised on a set of economic assumptions. While our November fiscal outlook included multiple economic scenarios, this update for May focuses on only one economic scenario: continuation of moderate economic growth.
https://lao.ca.gov/Publications/Detail/4036

The 2019-20 May Revision: Sales Tax Exemptions for Diapers and Menstrual Products [Publication Details]

May 12, 2019 - These exemptions would apply to the full amount of the state and local sales tax. The Governor’s proposal would require our office to submit reports evaluating these exemptions by January 1, 2021. Reports by Policy Area
https://lao.ca.gov/Publications/Detail/4040

The 2019-20 May Revision: LAO Economic Outlook

May 12, 2019 - The 2019-20 May Revision: LAO Economic Outlook The 2019-20 May Revision LAO Economic Outlook Our office just released a summary of our updated state fiscal outlook for the May Revision. Our fiscal outlook is premised on a set of economic assumptions.
https://lao.ca.gov/Publications/Report/4036

The 2019-20 May Revision: LAO Revenue Outlook

May 12, 2019 - With this lower-barrier to “repatriating” profits, we believe a portion of the surge in recent state collections likely is due to corporations bringing this cash back to the United States and paying the applicable state taxes on those profits.
https://lao.ca.gov/Publications/Report/4037

The 2019-20 May Revision: Initial Comments on the Governor’s May Revision

May 12, 2019 - The Governor proposes the state end 2019 ‑20 with $19.5  billion in total reserves. This total would consist of (1)  $16.5  billion in the Budget Stabilization Account, the state ’s constitutional reserve; (2)  $1.6  billion in the special fund for economic uncertainties (SFEU), which is available for any purpose including unexpected costs related to disasters;
https://lao.ca.gov/Publications/Report/4039

The 2019-20 May Revision: Sales Tax Exemptions for Diapers and Menstrual Products

May 12, 2019 - California ’s state and local governments charge a sales tax on the retail sale of tangible goods. The average rate is 8.6  percent. Of that, 3.94  percent raises money for the state ’s General Fund, and 2.06  percent raises money the state provides to counties for various local programs.
https://lao.ca.gov/Publications/Report/4040

The 2019-20 May Revision: Opportunity Zones [Publication Details]

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.
https://lao.ca.gov/Publications/Detail/4038

The 2019-20 May Revision: Opportunity Zones

May 11, 2019 - A handful of other states have adopted state tax credits that mirror the federal New Market Tax Credit to encourage investors to shift their New Market Tax Credit investment to those states. To gauge the effect of these state credits, we looked at how New Market Tax Credit investments changed in states after they
https://lao.ca.gov/Publications/Report/4038

An Extraordinary Moment in California's Fiscal History

Apr 11, 2019 - Specifically, we suggest that instead of using money today to repay low-interest budgetary debts (loans to the General Fund from special funds), the Legislature could achieve a higher return on its investment by making larger supplemental contributions toward its unfunded pension liabilities, which accrue at higher interest rates.
https://lao.ca.gov/Publications/Report/4003

The 2019-20 Budget: Undoing California’s Outstanding Budgetary Deferrals

Mar 26, 2019 - (For budgetary purposes, the state only recognized the deferral in the General Fund, not other funds ’ statements.) Pension Deferral. The state makes quarterly payments to the California Public Employees ’ Retirement System (CalPERS) for pension contributions for state employees.
https://lao.ca.gov/Publications/Report/3988