LAO commentary on Facebook IPO and state revenue forecasts

May 15, 2012 - The Facebook IPO ’s Effect on the Economy About One-Fifth of 2012 Personal Income Growth Will Relate to the IPO. It appears that the bulk of income that will be attributable to Californians due to the IPO will be classified as a type of wage income, although there likely will be substantial c apital gains activity as well.
https://lao.ca.gov/Recommendations/Details/596

Summary of LAO Findings and Recommendations on the 2012-13 Budget

The Facebook IPO ’s Effect on the Economy About One-Fifth of 2012 Personal Income Growth Will Relate to the IPO. It appears that the bulk of income that will be attributable to Californians due to the IPO will be classified as a type of wage income, although there likely will be substantial capital gains activity as well.
https://lao.ca.gov/laoapp/budgetlist/PublicSearch.aspx?PolicyAreaNum=70&KeyCol=596&Yr=2012

The 2019-20 May Revision: LAO Revenue Outlook

May 12, 2019 - So far this year, California-based company IPOs have had almost $150  billion of market capitalization ($82  billion of which was from the recent Uber IPO). While IPOs can ultimately increase capital gains, the primary observable effect of IPOs is in withholding.
https://lao.ca.gov/Publications/Report/4037

Frequently asked questions concerning Facebook and California's General Fund

Aug 1, 2012 - All of the state 's Facebook revenue projections were developed prior to the IPO in May  in line with California 's standard budget calendar. As such, both  the administration and our office had to make assumptions about what would happen to Facebook 's stock price in the months following the IPO.
https://lao.ca.gov/Recommendations/Details/618

^[PDF] The 1989-90 Budget: Perspectives and Issues

:~Jl~,ct~diJQ'Y~r~11;l,lJ.9;~P.J'siE~tg(;lcJ¢Y~1~"i.()f..capital ,g~,t!!,~!p.S2m¥"r,~~~z,~gJ~K~t:lt~J~~p~y~r~.Foods which had been a.ppi-o- ,pHated; to 'the SFEU were' redireCted to cover the shortfall, and' several actions were taken by the administration to reduce or delay expenditures.
https://lao.ca.gov/analysis/1989/pandi_89_part1.pdf

Background information on LAO's May 2012 economic and revenue forecasts

May 18, 2012 - Figure 6 compares the LAO May 2012 revenue estimate related to the Facebook IPO with those in other recent forecasts. The IPO was announced in February and thus was not included in the Governor ’s January 2012 forecast. ( Additional information on our May 2012 Facebook IPO revenue forecast was published on this website on May 15.)
https://lao.ca.gov/Recommendations/Details/599

Why Has Income Tax Withholding Lagged, Despite Job Growth? [EconTax Blog]

Nov 16, 2022 - The drop-off in IPO activity likely has also contributed to the relatively weak withholding figures seen to-date. While the typical share of withholding collections on bonuses and stock options is unknown, these types of incomes likely contributed to strong  tax withholding growth in 2021.
https://lao.ca.gov/LAOEconTax/Article/Detail/759

Amid Good Fiscal Times, Planning for the Future Is Crucial

May 21, 2019 - Whereas in a typical year, California-based companies make initial public offerings (IPOs) worth about $30  billion of market capitalization, 2019 has already seen IPOs with $150  billion in market capitalization.
https://lao.ca.gov/Publications/Report/4051

Whether or Not to Tap Reserves to Solve Estimated Budget Problem Emerges as Key Fiscal Decision Facing California’s Legislature

Apr 19, 2023 - We have attributed some of the weaker-than-expected personal income withholding tax collections so far to a steep 84  percent decline in initial public offering (IPO) activity in 2022. Given that many IPOs in recent years have been among technology-related firms, the ongoing slowdown in that sector combined with more restrictive access to credit going forward is cautionary.
https://lao.ca.gov/Publications/Report/4762

The 2015-16 Budget: Health Benefits for Retired State Employees - Health Benefits for Retired State Employees: Recommendations [Video]

View on YouTube . To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Health Benefits for Retired State Employees: Recommendations March 16, 2015
https://lao.ca.gov/Videos/Player?playlistId=21&videoId=141