Building Reserves to Prepare for a Recession

Mar 7, 2018 - The Governor may call a budget emergency in two cases: ( 1)  i f estimated resources in the current or upcoming fiscal year are insufficient to keep spending at the level of the highest of the prior three budgets, adjusted for inflation and population (a “fiscal budget emergency ”) or ( 2)  i n response to a natural or man ‑made disaster.
https://lao.ca.gov/Publications/Report/3769

Managing California’s Cash

Sep 3, 2019 - After a period of relative calm in the mid ‑ and late ‑1990s, California faced another series of years with acute budget problems following the dot ‑com bust and ensuing recession. Although the dot ‑com bust was relatively mild in economic terms, it hit the California budget —which is particularly reliant on the Bay Area ’s technology sector —especially hard.
https://lao.ca.gov/Publications/Report/4092

The 2018-19 Budget: California Hiring Tax Credits

Mar 15, 2018 - Final, valid claims were $340, 822 i n 2014 ( 2  p ercent of the initial estimate) and $693, 323 i n 2015 ( 1  p ercent of the initial estimate). Over these first two tax years the credit was available, at least 1, 829 t axpayers claimed the credit but 83  p ercent of the claims were invalid.
https://lao.ca.gov/Publications/Report/3784

The 2019-20 Budget: Analysis of Proposed Earned Income Tax Credit Expansion

Mar 6, 2019 - The administration proposes expanding the state EITC in three ways: ( 1)  p roviding an additional $ 500 c redit for all EITC ‑eligible workers that have at least one child under the age of six, ( 2)  i ncreasing the maximum qualifying income to $30,000, and ( 3)  i ncreasing the credit for individuals and families with earnings at the higher end of the eligibility range.
https://lao.ca.gov/Publications/Report/3960

The 2018-19 May Revision: LAO Economic Outlook

May 12, 2018 - The typical PE ratio since 1990 is 21 (19 if the dot-com bubble of the late 1990s and early 2000s is excluded). Similar to the price-to-earnings ratio, the home price-to-rent ratio is used to gauge if home prices are in line with underlying demand for housing.
https://lao.ca.gov/Publications/Report/3829

Evaluating State Economic Stimulus Proposals

Feb 1, 2021 - New state spending may ( 1)  d irectly increase state employment; ( 2)  i ncrease state purchases of goods and services from the private sector; and/or ( 3)  i ncrease private ‑sector employment, spending, and investment.
https://lao.ca.gov/Publications/Report/4331

Evaluation of the Property Tax Postponement Program

Oct 8, 2018 - Suppose a homeowner was choosing between PTP and HECM to help pay for five years of property taxes on a house with a taxable value of $300, 000 —representing around $18, 000 i n property taxes. Under PTP, the homeowner would repay the total principal amount plus about $1, 200 i n interest costs.
https://lao.ca.gov/Publications/Report/3885

Fixing Unemployment Insurance

Dec 2, 2024 - During the phase ‑in period, the state also entered the dot ‑com recession. These two cost pressures absorbed the remaining flexibility in the state ’s UI tax system. As  shown in Figure  4 , the state began this period in Schedule C but quickly moved to Schedule F+, the highest tax schedule, where it has remained since.
https://lao.ca.gov/Publications/Report/4943

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

Jan 13, 2020 - The Governor ’s budget includes $ 250  m illion General Fund in 2020 ‑ 21 —with a plan to allocate an additional $ 750  m illion in future years —to establish a new loan program at the California Infrastructure and Economic Development Bank (I ‑Bank).
https://lao.ca.gov/Publications/Report/4135

The 2019-20 Budget: California Spending Plan—Conformity

Oct 17, 2019 - Under prior law, this filer would have been allowed to deduct the entire $300,000 i n 2019. The administration estimates this change will increase CT revenue in 2019 ‑20 by $1.3  billion ($900  million ongoing).
https://lao.ca.gov/Publications/Report/4100