The 2021-22 Budget: Business Tax Incentives

Jan 28, 2021 - Using the evaluation framework outlined in this report, we offer the following recommendations on the Governor ’s proposals: Explore Alternative Approaches to Elective S Corporation Tax. The general concept behind the Governor ’s proposal has merit, but alternatives warrant the Legislature ’s consideration.
https://lao.ca.gov/Publications/Report/4327

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 2026-27 Budget: California Competes Extension

Mar 18, 2026 - Over 1,200 credit agreements have been approved by GO-Biz since the program ’s inception. Fiscal Effect of Program Is Variable. Figure  1 shows the value of credits claimed each year since the program ’s inception in 2014.
https://lao.ca.gov/Publications/Report/5162

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

Feb 23, 2026 - The 2026-27 Budget: CDTFA’s Cannabis and Tobacco Programs The 2026-27 Budget CDTFA ’s Cannabis and Tobacco Programs In this post, we discuss three Governor ’s budget proposals for the Department of Tax and Fee Administration ’s (CDTFA ’s) cannabis and tobacco programs.
https://lao.ca.gov/Publications/Report/5132

The 2026-27 Budget: State Mandate—Disclosure Requirements and Deferral of Property Taxation

Feb 19, 2026 - (Since Chapter  712 ’s requirements only applied to Los Angeles County, the Commission determined that other counties were not eligible to submit claims for state reimbursement.) Governor ’s Proposal Suspends Mandate.
https://lao.ca.gov/Publications/Report/5130

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 2025-26 California Spending Plan: Other Provisions

Oct 16, 2025 - Governor ’s Office of Land Use and Climate Innovation The 2024-25 budget package established the Governor ’s Office of Land Use and Climate Innovation (LCI) as part of a reorganization of the former Governor ’s Office of Planning and Research.
https://lao.ca.gov/Publications/Report/5081

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

Managing California’s Cash

Sep 3, 2019 - 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. Again, budgetary problems put pressure on the state ’s cash position as revenue receipts came in lower than expected.
https://lao.ca.gov/Publications/Report/4092

Sales Tax Exemption for Bunker Fuel

Nov 19, 2025 - As suggested by the California Department of Tax and Fee Administration, we use nationwide estimates of residual fuel oil consumption from the Energy Information Administration and assume that California ’s share of fuel consumption is proportional to its share of U.S. port tonnage.
https://lao.ca.gov/Publications/Report/5094