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

The 2020-21 Budget: California's Fiscal Outlook

Nov 20, 2019 - Importantly, this scenario assumes the federal government approves the managed care organization (MCO) tax and the state faces no major disasters over the next few years. (The MCO tax offsets General Fund costs in Medi ‑Cal but it requires federal approval.)
https://lao.ca.gov/Publications/Report/4111

The 2020-21 Budget: Overview of the Governor's Budget

Jan 13, 2020 - Recently, corporation tax collections have grown faster than anticipated while personal income tax collections have grown somewhat slower. The administration assumes that this pattern will continue. This is because they attribute the pattern to partnerships, which are taxed under the personal income tax, changing to corporations in response to 2017 federal tax changes.
https://lao.ca.gov/Publications/Report/4135

Fiscal Outlook: Medi-Cal

Nov 14, 2018 - Expiration of Managed Care Organization (MCO) Tax Current MCO Tax. Since 2016-17, the state has imposed a per-member tax on Medi-Cal and non-Medi-Cal MCOs. Revenues from the MCO tax, which leverages federal funding for Medi-Cal, provide a substantial General Fund offset in Medi-Cal.
https://lao.ca.gov/Publications/Report/3898

The 2019-20 Budget: California Spending Plan (Final Version)

Oct 17, 2019 - The spending plan reauthorizes the MCO tax —for three and one ‑half years —under a broadly similar structure as the previous tax. As with the previous MCO tax, the reauthorized tax is a tiered, per ‑member, per month tax on the Medi ‑Cal and commercial enrollment of MCOs.
https://lao.ca.gov/Publications/Report/4083

An Extraordinary Moment in California's Fiscal History

Apr 11, 2019 - In another example, the Governor proposes expanding the California Earned Income Tax Credit (CalEITC) program. The administration would pay for CalEITC with the additional revenue that would result from conforming the state tax code to various federal tax code provisions.
https://lao.ca.gov/Publications/Report/4003

The 2021-22 Budget: The Governor’s Proposition 2 Proposals

Apr 26, 2021 - Under Proposition  2, the state must continue to deposit funds into the BSA until it reaches a threshold balance of 10  percent of General Fund tax revenue. Once the BSA reaches this threshold, required deposits that would bring the fund above 10  percent of General Fund taxes instead must be spent on infrastructure.
https://lao.ca.gov/Publications/Report/4418

Federal Spending in California

Jan 18, 2017 - To do this, the Tax Foundation increases its estimate of tax revenues from each state in proportion to the total federal deficit. In effect, this inflates the estimated amount Californians “pay” in taxes.
https://lao.ca.gov/Publications/Report/3531/2

Evolution of the Balance of the Budget Stabilization Account

Nov 14, 2018 - Under Proposition  2, the state must make deposits into the BSA until its balance reaches a threshold of 10  percent of General Fund taxes. Each year that General Fund tax revenues grow, this 10  percent threshold also grows.
https://lao.ca.gov/Publications/Report/3900

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