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

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 2018-19 Budget: California Hiring Tax Credits

Mar 15, 2018 - If the qualified employee works 2,000 hours in a given year, the taxpayer could claim a credit of $2, 450 o n their qualified wages of $7,000. This works out to 6. 1  p ercent of the $40, 000 i n total wages paid to the employee.
https://lao.ca.gov/Publications/Report/3784

The 2020-21 Budget: Expanding the Minimum Franchise Tax Exemption

Mar 23, 2020 - This estimate assumes that about 125, 000 n ew eligible noncorporate taxpayers claim the exemption each year. (The revenue assumption also makes a rough adjustment for the timing of the revenue effect in the first year.)
https://lao.ca.gov/Publications/Report/4207

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

Mar 6, 2019 - The Legislature expanded the state EITC for tax year 2018 i n two ways. First, the income limits were raised from $22, 300 t o $24,950 for filers with dependents and from $15, 000 t o $16,750 for workers with no dependents.
https://lao.ca.gov/Publications/Report/3960

Evaluation of the Property Tax Postponement Program

Oct 8, 2018 - Suppose a homeowner was choosing between PTP and HECM to help pay for five years of property taxes on a house with a taxable value of $300, 000 —representing around $18, 000 i n property taxes. Under PTP, the homeowner would repay the total principal amount plus about $1, 200 i n interest costs.
https://lao.ca.gov/Publications/Report/3885

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

Taxation of Sugary Drinks

Nov 26, 2018 - As shown in Figure  3, for example, a one cent per ounce tax results in a tax of $0. 12 o n a can of cola and $0. 64 o n a large bottle of cranberry juice cocktail. For a given container size, this type of tax treats all sugary drinks equally, regardless of their sugar content or other characteristics.
https://lao.ca.gov/Publications/Report/3903

Evaluating State Economic Stimulus Proposals

Feb 1, 2021 - As a result, relying solely on the results of estimated jobs or economic output from these types of studies to evaluate a stimulus proposal likely will lead to a n incomplete assessment. …But Studies Still Can Provide Useful Information.
https://lao.ca.gov/Publications/Report/4331