Long-term Capacity for Debt Payments Under Proposition 2

Dec 21, 2017 - Significant Stock Market Gains Could Result in Temporary Capacity. The projection shown in Figure  1 assumes relatively flat stock market growth in our multiyear projections. As a result, these estimates do not anticipate large, but temporary, increases in Proposition  2 debt funding that could occur if the stock market experiences significant growth.
https://lao.ca.gov/Publications/Report/3727

The 2018-19 May Revision: LAO Economic Outlook

May 12, 2018 - Some signs suggest that two important assets —stocks and homes in certain markets —are somewhat overvalued. The price of stocks is related, over the long term, to corporate earnings. Accordingly, price-to-earnings (PE) ratios are one key metric used to evaluate stock prices.
https://lao.ca.gov/Publications/Report/3829

The 2019-20 Budget: California Spending Plan—Conformity

Oct 17, 2019 - When one business purchases stock in another business, it has some flexibility under federal tax law (specifically, Section 338) about whether to treat the purchase as an asset purchase or a stock purchase.
https://lao.ca.gov/Publications/Report/4100

The 2018-19 May Revision: LAO Revenue Outlook

May 12, 2018 - As such, our revenue estimates are premised on two key assumptions: the continuation of the current economic expansion through 2022, and a moderate stock market decline in 2019 followed by a gradual rebound.
https://lao.ca.gov/Publications/Report/3830

Volatility of the Personal Income Tax Base

Feb 8, 2017 - Wages and salaries include commissions, tips, bonuses, and gains from exercising stock options. Dividends, Interest, and Rent. BEA ’s personal income measure includes cash payments of dividends, interest, and rent.
https://lao.ca.gov/Publications/Report/3548

Building Reserves to Prepare for a Recession

Mar 7, 2018 - Revenues fluctuate in response to underlying changes in the economy and stock market more than most other states. The figure below shows revenue losses over the past three recessions —which have totaled in the tens of billions of dollars over multiyear periods.
https://lao.ca.gov/Publications/Report/3769

The 2021-22 Budget: Business Tax Incentives

Jan 28, 2021 - With the stock market at all ‑time highs, many other corporations raised capital by selling additional shares of stock. At the same time, interest rates are at historically low levels, making borrowing inexpensive.
https://lao.ca.gov/Publications/Report/4327

Evaluating State Economic Stimulus Proposals

Feb 1, 2021 - Before creating a new stimulus program, policymakers should take stock of existing efforts at the federal, state, and local levels. Having many similar programs spread across different state agencies or different levels of government can be inefficient and confusing for the people or businesses the programs are intended to benefit.
https://lao.ca.gov/Publications/Report/4331

Do Communities Adequately Plan for Housing?

Mar 8, 2017 - Zoning rules determine the size of a community ’s housing stock by dictating how many sites housing can be built on and at what densities. Zoning rules, therefore, must allow for new housing on a sufficient number of sites and at sufficient densities if a city or county is to meet its community ’s housing needs.
https://lao.ca.gov/Publications/Report/3605

Income Mobility in California Across Generations

Jan 4, 2017 - They measure income using pre–tax income from labor market earnings and capital (for example, from the sale of stocks or bonds), as well as unemployment, social security, and disability benefits. Together, these form the most important sources of income for a large majority of Californians.
https://lao.ca.gov/Publications/Report/3518