The 2018-19 May Revision: LAO Economic Outlook

May 12, 2018 - As of early May, the PE ratio of the Standard and Poor ’s 500 index was 24.5. 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

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

Mar 6, 2019 - This increase would be a flat $500 for every worker with income under $28,000, then phase out between $28,000 and $30, 000 o f income at a rate of $ 1 o f credit for each $ 4 o f income. (This phase out range would be fixed until 2022 and would be adjusted for inflation thereafter.)
https://lao.ca.gov/Publications/Report/3960

The 2019-20 Budget: Overview of the Governor's Budget

Jan 14, 2019 - As local governments reach these new goals, an additional $ 500  m illion would be available to cities and counties for general purposes. Middle ‑Income Housing Loans. The Governor ’s budget proposes $ 500  m illion General Fund to expand the California Housing Finance Agency ’s (CalHFA ’s) Mixed ‑Income Loan Program.
https://lao.ca.gov/Publications/Report/3916

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 2022-23 Budget: Federal Tax Conformity for Federal Business Assistance

Jan 26, 2022 - The administration estimates that this change would reduce state tax revenues by about $500  million over several years. LAO Comments Proposal Consistent With Previous Legislative Action. Assembly Bill  80 partially conformed state law with federal tax treatment of other federal pandemic ‑related economic relief programs.
https://lao.ca.gov/Publications/Report/4501

The 2025-26 California Spending Plan: Other Provisions

Oct 16, 2025 - When enacted, the budget assumed annual General Fund savings of $500  million in 2025-26 that was expected to grow to roughly $2  billion General Fund by 2028-29 across three departments —California Departments of Corrections and Rehabilitation (CDCR), Health Care Services (DHCS), and Social Services.
https://lao.ca.gov/Publications/Report/5081/

The 2018-19 May Revision: LAO Revenue Outlook

May 12, 2018 - Under our economic scenario, the S &P 500 drops by about 8 percent in 2019. Accordingly, estimated net capital gains decrease to about $135 billion in 2019 and remain around that level through 2022. Corporation Tax (CT) Revenues Up Significantly in 2017-18.
https://lao.ca.gov/Publications/Report/3830

Building Reserves to Prepare for a Recession

Mar 7, 2018 - By most measures, the recession of the early 1990s was more severe than the dot ‑com bust in the early 2000s. For example, unemployment in California reached 9. 7  p ercent in mid ‑ to late ‑1992, but peaked at 6. 9  p ercent after the dot ‑com bust.
https://lao.ca.gov/Publications/Report/3769

The 2025-26 Budget: Governor’s Office of Business and Economic Development

Mar 18, 2025 - In addition, each applicant must propose to do one of the following: (1)  create 500 new full-time jobs, (2)  make an investment of at least $10  million, or (3)  create jobs or make an investment in a high-poverty or high-unemployment area.
https://lao.ca.gov/Publications/Report/5018

Tax Credit Expansions in the American Rescue Plan

Apr 13, 2021 - Child Tax Credit Under prior law, the CTC provided filers with income below $200,000 ($400,000 for joint filers) a credit of up to $2,000 for every dependent from ages 0 to 16, and up to $500 for dependents 17 and older.
https://lao.ca.gov/Publications/Report/4410