State Fiscal Health Index: April 2019 [EconTax Blog]

May 29, 2019 - Knowing when the state ’s next budget slowdown will happen is impossible. Many economic factors outside the state ’s control influence state revenues. Despite this, certain data points can help us understand whether shifting economic conditions are likely to lead to growth or declines in state revenues in the coming months.
https://lao.ca.gov/LAOEconTax/Article/Detail/378

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

May 29, 2019 - This reduced counties ’ costs for health care services for this population and increased state costs. In response, the state redirected health realignment funding to offset state costs in the California Work Opportunity and Responsibility to Kids (CalWORKs) program.
https://lao.ca.gov/Publications/Report/4077

The 2019-20 May Revision: K-12 Cal Grant Mandate

May 28, 2019 - In the nearby box, we provide background on how the state identifies mandates and provides the associated reimbursements. Background on Reimbursable State Mandates Constitution Requires the State to Reimburse Local Governments for Mandated Activities.  
https://lao.ca.gov/Publications/Report/4052

Cannabis Tax Revenue Update [EconTax Blog]

May 23, 2019 - The state levies two excise taxes on cannabis: a retail excise tax and a cultivation tax. May Revision Estimates. The Governor ’s May Revision estimated that 2018-19 revenue would be $288 million and that 2019-20 revenue would be $359 million.
https://lao.ca.gov/LAOEconTax/Article/Detail/376

April 2019 State Tax Collections [EconTax Blog]

May 21, 2019 - Specifically, filers no longer have an incentive to pay a higher proportion of their state tax liability within the tax year. As a result, the state likely will see somewhat lower collections in December and January—compared to recent years—and much larger collections in April.
https://lao.ca.gov/LAOEconTax/Article/Detail/375

Amid Good Fiscal Times, Planning for the Future Is Crucial

May 21, 2019 - The idea here is that in good times —when revenues are strong —the state spends somewhat below its capacity, sequestering the difference in reserves. 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.
https://lao.ca.gov/Publications/Report/4051

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

May 21, 2019 - The idea here is that in good times—when revenues are strong—the state spends somewhat below its capacity, sequestering the difference in reserves. 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.
https://lao.ca.gov/Publications/Detail/4051

April 2019 Jobs Report [EconTax Blog]

May 17, 2019 - Overall employment in the state has grown 1.6 percent over the previous 12 months, close to the nation ’s 1.8 percent growth rate.  
https://lao.ca.gov/LAOEconTax/Article/Detail/374

Unemployment Claims Update: April 2019 [EconTax Blog]

May 17, 2019 - Source: United States Department of Labor with LAO calculations  
https://lao.ca.gov/LAOEconTax/Article/Detail/373

The 2019-20 Budget: May Revision Multiyear Budget Outlook

May 17, 2019 - The Governor has stated that one of the primary objectives of his budget is to better prepare the state for such a future challenge. To do this, the administration uses a substantial portion of the expected surplus to pay down state debts and liabilities.
https://lao.ca.gov/Publications/Report/4050