Rethinking California's Reserve Policy

Apr 10, 2025 - Proposition  4 sets up a system in which all tax revenues —with only limited exceptions —are counted at some level of government (for example, the state, or a city, county, or school district). Funds transferred between these entities of government are counted at some part of the structure.
https://lao.ca.gov/Publications/Report/5028

The 2025-26 Budget: Initial Comments on the Governor's May Revision

May 17, 2025 - This budget problem is driven by two key factors: higher baseline spending, most notably in Medi‑Cal, and lower revenues, reflecting diminished expectations for both the personal income tax and the corporation tax.
https://lao.ca.gov/Publications/Report/5044

The 2017-18 Budget: California Spending Plan

Oct 18, 2017 - (As seen in Step Two above, prior to 2017 ‑18, sales tax growth paid prior year cost increases.) This sales tax payment acceleration will be ongoing. Despite Additional Revenue, Counties Will Face Some Costs.
https://lao.ca.gov/Publications/Report/3694/8

The State Appropriations Limit

Apr 21, 2021 - For example, counties can use any of the following population adjustments in calculating their limits: ( 1)  t he change in population within the county, ( 2)  t he change in population in the county and all counties that have contiguous borders with it, or ( 3)  t he change in population within the incorporated portion of the county.
https://lao.ca.gov/Publications/Report/4416

The 2023-24 Budget: Overview of the Spending Plan (Final Version)

Oct 16, 2023 - The 2023 ‑24 total also includes $135  million for contingencies related to the 2023 storms —$40  million for the communities of Planada in Merced County and Pajaro in Monterey County, which experienced severe damage and displacement from the storms, and $95  million for other response and recovery activities.
https://lao.ca.gov/Publications/Report/4788

The 2025-26 Budget: Overview of the Governor's Budget

Jan 13, 2025 - Significant Changes to Solutions From June 2024 Budget Package Managed Care Organization (MCO) Tax Package. Some of the largest budget solutions in the June budget package involved the MCO tax, a tax on health plans that supports the Medi ‑Cal program.
https://lao.ca.gov/Publications/Report/4951

Flexible Funding to California in the American Rescue Plan

Mar 23, 2021 - Cities and counties will receive fiscal recovery funds based on a set of formulas that considers the jurisdiction ’s population, among other factors. The federal government will distribute funds directly to all counties and cities with populations greater than 50,000.
https://lao.ca.gov/Publications/Report/4407

Fiscal Outlook: In-Home Supportive Services (IHSS)

Nov 14, 2018 - For further discussion of the MCO tax, please reference the “Medi-Cal ” Fiscal Outlook online post. Administration Scheduled to Release Report of 1991 Realignment and IHSS County Costs. In 2017 ‑18, a new IHSS county maintenance ‑of ‑effort (MOE) —referred to as the 2017 IHSS MOE —was established.
https://lao.ca.gov/Publications/Report/3899

Fiscal Outlook: In-Home Supportive Services (IHSS)

Nov 15, 2017 - This increase in county contributions to IHSS costs effectively decreases our projected state share of cost for the IHSS program by hundreds of millions of dollars annually. Restoration of the IHSS Service Hours Previously Reduced by 7  Percent Tied to Managed Care Organization (MCO) Tax Existence.
https://lao.ca.gov/Publications/Report/3712

The 2025-26 Budget: California's Fiscal Outlook

Nov 20, 2024 - Income tax collections have seen a similar bounce. This recovery in income tax revenues is being driven by the recent stock market rally, which calls into question its sustainability in the absence of improvements to the state ’s broader economy.
https://lao.ca.gov/Publications/Report/4939