The 2026-27 Budget: California Competes Extension

Mar 18, 2026 - In other words, there is no explicit downside risk of making the award. …But Also Indicates a Possible Trade-Off. However, there is a potential trade-off when considering awarding a credit to an applicant with a higher potential benefit to the state but a lower probability of achieving their milestones, compared to an applicant with a lower benefit but who is more likely to achieve their milestones.
https://lao.ca.gov/Publications/Report/5162

Evaluation of a Sales Tax Exemption for Certain Manufacturers

Dec 11, 2018 - In other words, it assumes that if businesses or consumers did not purchase these items, they would not have bought other taxable items instead. This assumption both overstates the net increase in taxable spending and contradicts an assumption used to estimate environmental benefits, as described below.
https://lao.ca.gov/Publications/Report/3907

The 2018-19 Budget: Governor's Gann Limit Estimates

Apr 6, 2018 - In other words, the discretionary grants are not accounted for under state or local calculations, violating a core principle of the Gann Limit. Counting these subventions at the state level reduces room by $1.3  billion in 2016 ‑17, $877  million in 2017 ‑18, and $1.8  billion in 2018 ‑19.
https://lao.ca.gov/Publications/Report/3800

The 2017-18 Budget: Governor's Gann Limit Proposal

Mar 2, 2017 - As revenues surged during the dot ‑com boom of the late 1990s, however, the state approached the limit. The state had excess revenues in 1999 ‑00, but because appropriations were under the limit in 2000 ‑01, additional Proposition  98 spending and taxpayer rebates were not required.
https://lao.ca.gov/Publications/Report/3596

Fixing Unemployment Insurance

Dec 2, 2024 - In other words, paradoxically, businesses ’ improving reserve balances moved them to lower tax rate rungs within the F+ schedule, which had the effect of lowering state UI tax rates, as shown in Figure  5 .
https://lao.ca.gov/Publications/Report/4943

California’s Low-Wage Workers and Minimum Wage

Mar 11, 2024 - In other words, we estimate the 10 th percentile hourly wage for men to be roughly 5  percent to 10  percent higher than the 10 th percentile hourly wage for women. This wage gap is smaller than national estimates, though still substantial.
https://lao.ca.gov/Publications/Report/4878/3

A Key Interaction Between Sales Taxes and Other Taxes on Cannabis Retailers

Dec 17, 2019 - In other words, these local taxes apply to pre-sales tax gross receipts. Sales Tax Applies to Tax-Inclusive Gross Receipts. Like local business taxes, state and local sales taxes also apply to retail gross receipts.
https://lao.ca.gov/Publications/Report/4124

Volatility of California’s Personal Income Tax Structure

Sep 28, 2017 - In other words, revenue from the PIT is more than five times as volatile as personal income itself. Below, we discuss the sources of the 9.9 AD difference between the 12.2 AD of the current PIT and the 2.3 AD of personal income.
https://lao.ca.gov/Publications/Report/3703

California’s Low-Wage Workers and Minimum Wage

Mar 11, 2024 - In particular, its accuracy depends on the assumption that outcomes for nonrespondents are “conditionally missing at random. ” In other words, if the method used to construct the weights misses major systematic differences between respondents and nonrespondents, then the resulting estimates potentially can be quite inaccurate.
https://lao.ca.gov/Publications/Report/4878/4

Review of the California Competes Tax Credit

Oct 31, 2017 - In 2010, the hiring and sales tax credits resulted in $698  million of reduced corporation and personal income tax revenues for the state. This amount grew at an average annual rate of 18  percent between 2000 and 2010.
https://lao.ca.gov/Publications/Report/3709