The Definition of Qualified Capital Outlay for the State Appropriations Limit

Feb 18, 2022 - Appropriations subject to the limit are calculated by taking proceeds of taxes and reducing them by excluded spending. Statutory Definition of Qualified Capital Outlay. One important SAL exclusion is qualified capital outlay.
https://lao.ca.gov/Publications/Report/4547

2021-22 “Big Three” Revenue Outlook Update: February 2022 [EconTax Blog]

Feb 17, 2022 - We currently project that there is a very good chance that collections from the state ’s “big three ” taxes —personal income, sales, and corporation taxes —will exceed the Governor ’s Budget assumption of $185 billion in 2021-22 by at least several billion dollars.
https://lao.ca.gov/LAOEconTax/Article/Detail/725

The 2022-23 Budget: Governor’s Public Safety Package

Feb 17, 2022 - In a July 2021 analysis of violent crime in large California counties, PPIC found that the share of crimes involving guns increased for homicides, aggravated assaults, and  robberies. Increase in Number of Armed and Prohibited Persons.
https://lao.ca.gov/Publications/Report/4546

U.S. Retail Sales Update: January 2022 [EconTax Blog]

Feb 16, 2022 - U.S. retail sales (seasonally adjusted) grew 3.8 percent from December to January. Retail sales have been elevated after growing dramatically in early 2021, but inflation has offset most of the past year’s apparent “growth.”
https://lao.ca.gov/LAOEconTax/Article/Detail/724

The 2022-23 Budget: Public Health Foundational Support

Feb 16, 2022 - This could include reporting on: hiring numbers, status of internal training and educational opportunities, status of the LHJ plans (especially in the counties currently without CHAs and CHIPs), and other implementation challenges.
https://lao.ca.gov/Publications/Report/4544

The 2022-23 Budget: Expanded Learning Programs

Feb 16, 2022 - This system of support includes the California Department of Education, 16 county offices of education across 11 regions, and contracted technical assistance providers. The  technical assistance provides schools with ongoing support to help them create effective programs.
https://lao.ca.gov/Publications/Report/4545

The 2022-23 Budget: California State University

Feb 15, 2022 - The trailer bill language indicates that services provided under the proposal are intended to supplement and not supplant existing foster youth services provided by the campus, county, or state. The language also requires CSU to submit a report on foster youth services and outcomes every two years beginning March  31, 2024.
https://lao.ca.gov/Publications/Report/4537

The 2022-23 Budget: State Payments on the Federal Unemployment Insurance Loan

Feb 15, 2022 - Businesses Set to Pay Add ‑On Federal UI Tax Beginning in 2023. To repay the federal loans, the federal UI payroll tax rate on employers will increase by 0.3  percent for tax year 2022. However, employers will not pay this higher rate until 2023  when employers remit their 2022 federal UI payroll taxes.
https://lao.ca.gov/Publications/Report/4543

The 2022-23 Budget: Assessing Proposals to Address Unemployment Insurance Fraud

Feb 15, 2022 - In light of this scrutiny, the Internal Revenue Service recently called off its planned adoption of ID.me for tax filing. (After the publication of this report, the IRS reinstated its use of ID.me, but with added safeguards.)
https://lao.ca.gov/Publications/Report/4542

The 2022-23 Budget: State Payments on the Federal Unemployment Insurance Loan [Publication Details]

Feb 15, 2022 - In this post, we provide a projection of state and employer costs to repay the federal Unemployment Insurance loan under two economic scenarios, assess the effects of the Governor's proposed $3 billion General Fund payment toward the outstanding loan, and present an alternative to the Governor's proposal that could provide more immediate tax relief.
https://lao.ca.gov/Publications/Detail/4543