The 2019-20 Budget: Tax Conformity

Mar 6, 2019 - In addition to the effective rate changes described above, the 2017 l aw made other changes that broadened the tax base —that is, reduced or eliminated various credits and deductions. Examples of these changes include eliminating personal exemptions, ending many individual and business deductions, and imposing new limits on other common deductions.
https://lao.ca.gov/Publications/Report/3959

Updating the California Necessities Index

Aug 14, 2025 - Options A, B, and C, which largely maintain the current CNI calculation, are all similar to the current CNI historically. By maintaining an estimate for household fuels and other utilities, option C has the most fidelity to the current CNI concept.
https://lao.ca.gov/Publications/Report/5065

Building Reserves to Prepare for a Recession

Mar 7, 2018 - The floods resulted in disaster declarations in 48 c ounties and forced more than 120,000 from their homes. After federal reimbursements, these floods led to nearly $ 200  m illion in state costs (over $ 300  m illion in today ’s dollars).
https://lao.ca.gov/Publications/Report/3769

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 2018-19 May Revision: LAO Economic Outlook

May 12, 2018 - 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 2018-19 Budget: The Administration’s Proposition 55 Estimates

Mar 1, 2018 - Along with the general conceptual difficulty of defining a workload budget in the first place, this means that some features of the Proposition   55 c alculation are difficult to interpret and implement.
https://lao.ca.gov/Publications/Report/3765

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

Mar 6, 2019 - Within this income range (to the left of the kink) EITC benefits decrease at the same rates they increase before the peak (for example, 34 c ents for each additional $ 1 e arned for a worker with two dependents).
https://lao.ca.gov/Publications/Report/3960

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

Assessing Recent Changes to California Competes

Mar 30, 2020 - As of November 2019, 1, 043 c redit agreements had been negotiated and approved. The companies that have tax credit agreements can only claim a credit after they have met the specified amounts of hiring and investment.
https://lao.ca.gov/Publications/Report/4213

The 2020-21 Budget: Taxation of E-Cigarettes

Feb 24, 2020 - Packs typically contain 20 c igarettes and thus require a $2. 87 t ax stamp. A second, less common type of pack contains 25 c igarettes and requires a $3. 59 t ax stamp. As a result, the vendor needs to produce just two denominations of stamps, and taxpayers can comply with the tax by affixing just one stamp to each pack.
https://lao.ca.gov/Publications/Report/4171