Cannabis Tax Revenue Update (2025 Q1) [EconTax Blog]

Jun 3, 2025 - Chapter 56, Statutes of 2022 (AB 195, Committee on Budget) eliminated the cultivation tax on July 1, 2022. This law also requires the administration to increase the retail excise tax rate to 19 percent effective July 1, 2025.
https://lao.ca.gov/LAOEconTax/article/Detail/831

Cannabis Tax Revenue Update (2025 Q1) [EconTax Blog]

Jun 3, 2025 - Chapter 56, Statutes of 2022 (AB 195, Committee on Budget) eliminated the cultivation tax on July 1, 2022. This law also requires the administration to increase the retail excise tax rate to 19 percent effective July 1, 2025.
https://lao.ca.gov/LAOEconTax/Article/Detail/831

The 2025-26 Budget: State Mandates—Regional Water Quality Control Boards

May 30, 2025 - Additional details about the mandate are as follows: Time Period in Question: November 10, 2010 to December 31, 2017. CSM ’s Estimated Statewide Cost to Reimburse Local Governments: Between $238,301 and $334,104.
https://lao.ca.gov/Publications/Report/5054

The 2025-26 Budget: May Revision Trailer Bill Proposals on the Delta Conveyance Project and Water Quality Control Plans

May 27, 2025 - The language removes the requirements that DWR (1)  obtain an appraisal before trying to first negotiate with the owner and (2)  provide a written statement to the property owner about the basis for what it considers just compensation when taking land by eminent domain.
https://lao.ca.gov/Publications/Report/5053

The 2025-26 Budget: May Revision Trailer Bill Proposals on the Delta Conveyance Project and Water Quality Control Plans [Publication Details]

May 27, 2025 - This post describes and raises issues for legislative consideration about two proposed trailer bills related to (1) the Delta Conveyance Project and (2) water quality control plans.
https://lao.ca.gov/Publications/Detail/5053

The 2025-26 Budget: Multiyear Budget Outlook [Publication Details]

May 24, 2025 - This post presents our office’s forecast of the condition of the state General Fund budget through 2028-29 under our revenue estimates and assuming the Governor’s May Revision policies were adopted.
https://lao.ca.gov/Publications/Detail/5052

The 2025-26 Budget: Multiyear Budget Outlook

May 24, 2025 - As shown in Figure  1, our estimates are broadly consistent with those of the administration. Both our office and the Department of Finance (DOF) project operating deficits ranging from $10  billion to $20  billion over the multiyear period.
https://lao.ca.gov/Publications/Report/5052

The 2025-26 Budget: Multiyear Budget Outlook

May 24, 2025 - This post presents our office’s forecast of the condition of the state General Fund budget through 2028-29 under our revenue estimates and assuming the Governor’s May Revision policies were adopted.
https://lao.ca.gov/Publications/Report/5052/1

The 2025-26 Budget: Concession Bargaining [Publication Details]

May 19, 2025 - This is our analysis of the Governor’s May Revision proposal to (1) not fund scheduled pay increases to state employees established in ratified labor agreements and (2) authorize the Department of Finance (DOF) to impose reductions to employee compensation if collective bargaining agreements to achieve savings are not in place by July 1, 2025.
https://lao.ca.gov/Publications/Detail/5047

The 2025-26 Budget: Cap-and-Trade Reauthorization and Greenhouse Gas Reduction Fund Proposals at May Revision

May 19, 2025 - Based on recent information we have reviewed from HSRA, we estimate this funding gap has grown to roughly $10 billion (assuming the project retains its federal funding and $1 billion annually from GGRF through 2030).
https://lao.ca.gov/Publications/Report/5049