Long-term Capacity for Debt Payments Under Proposition 2

Dec 21, 2017 - True Up Provisions. Under Proposition  2 ’s “true up ” provisions, the state reevaluates the estimate of Proposition  2 requirements twice: once in each two subsequent budgets. Under these reevaluations, the rainy day fund deposit is revised up (down) if capital gains taxes were higher (lower) than the state ’s prior estimates.
https://lao.ca.gov/Publications/Report/3727

The 2026-27 Budget: CDTFA’s Cannabis and Tobacco Programs

Feb 23, 2026 - The Governor proposes covering an additional $2  million of annual flavor ban enforcement costs by using existing Compliance Fund appropriations that the department has not been spending. Hemp ‑Derived Cannabinoids.
https://lao.ca.gov/Publications/Report/5132

The 2026-27 Budget: California Competes Extension

Mar 18, 2026 - Credits may be used to offset either personal income or corporation taxes and can be carried forward for up to six years. Over 1,200 credit agreements have been approved by GO-Biz since the program ’s inception.
https://lao.ca.gov/Publications/Report/5162

The 2025-26 California Spending Plan: Other Provisions

Oct 16, 2025 - Proposition  2 (2014) requires the state to spend a specified amount of money (determined through a budgetary formula) each year towards eligible liabilities. It has been state policy to satisfy this requirement through the state ’s General Fund contributions to prefund retiree health benefits and annual supplemental pension payments to the California Public Employees Retirement System (CalPERS).
https://lao.ca.gov/Publications/Report/5081

Fixing Unemployment Insurance

Dec 2, 2024 - (To raise the same amount of money under the state ’s current taxable wage base of $7,000, the standard tax rate would need to be 5  percent, well above the state ’s current tax rate of 3.5  percent.)
https://lao.ca.gov/Publications/Report/4943

Local Sales Tax Rebates in 2023-24

Sep 16, 2025 - Substantial Rebates in Many Counties … As shown in Figure  2, 2023-24 rebate payments varied across counties. In nine counties, rebates exceeded $5 per resident. In seven others, rebates ranged from $1 to $5 per resident.
https://lao.ca.gov/Publications/Report/5074

The 2025-26 Budget: California’s Film Tax Credit

Feb 28, 2025 - In contrast, filming activity following the strikes has shown no signs of recovering so far, with shoot days slightly declining further in 2024. Figure  5 shows the differing effects of these two events by comparing the total percent change in employment levels for California and the U.S. since 2019.
https://lao.ca.gov/Publications/Report/5000

Volatility of the Personal Income Tax Base

Feb 8, 2017 - Wages and salaries include commissions, tips, bonuses, and gains from exercising stock options. Dividends, Interest, and Rent. BEA ’s personal income measure includes cash payments of dividends, interest, and rent.
https://lao.ca.gov/Publications/Report/3548

Building Reserves to Prepare for a Recession

Mar 7, 2018 - Under Proposition  2, the state must put money into the BSA until its total reaches a maximum amount of 10  p ercent of General Fund tax revenue. Currently, this is about $13. 5  b illion. Once the BSA reaches this maximum, funds that would bring the BSA above 10  p ercent of General Fund taxes must be spent on infrastructure.
https://lao.ca.gov/Publications/Report/3769

The 2025-26 Budget: CDTFA’s Tobacco Programs

Feb 14, 2025 - Proposal Sets Up Decision Next Year. The Cigarette and Tobacco Products Compliance Fund had a $2  million surplus in 2023-24 and entered 2024-25 with a $12  million balance. In principle, these resources, together with the proposed augmentation, should cover the cost of implementing these laws without any need to redirect resources away from other aspects of the licensing program.
https://lao.ca.gov/Publications/Report/4966