The 2022-23 Budget: Temporary Limits on Business Tax Provisions

Jan 26, 2022 - This 2022-23 budget post provides background on temporary limits on the use of net operating loss deductions and business tax credits. It describes the Governor’s proposal to lift these limits one year early and provides some comments to the Legislature.
https://lao.ca.gov/Publications/Report/4500

Updating the California Necessities Index

Aug 14, 2025 - Option D, which reflects, in part, changes in prices of luxury goods and services, does not sufficiently capture the current CNI concept and is not historically similar enough. Change Required For 2026 ‑27  Budget.
https://lao.ca.gov/Publications/Report/5065

The 2025-26 Budget: Governor’s Office of Business and Economic Development

Mar 18, 2025 - GO-Biz selects applicants via a competitive application process and negotiates individual agreements with each successful applicant, including year-by-year milestones an d corresponding credit allocations.
https://lao.ca.gov/Publications/Report/5018

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

An Overview of California’s Research and Development Credit [Publication Details]

Nov 30, 2003 - Economic theory suggests that without some form of subsidy, overall research and development (R&D) spending in society would be lower than the economically optimal level. A strong case can be made that such a subsidy is appropriate at the federal level. However, we are not aware of economic evidence which, on balance, justifies a state credit in addition to the federal credit.
https://lao.ca.gov/Publications/Detail/1064

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

Fixing Unemployment Insurance

Dec 2, 2024 - When first established, the state was toward the bottom of the schedules (Schedule D) —corresponding to relatively high rates —and had a sizable reserve for the time. 1984 Legislation Also Put Forth State ’s Current Experience Rating System.
https://lao.ca.gov/Publications/Report/4943

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: 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

How Will Aging Baby Boomers Affect Future Property Tax Revenues?

Jun 20, 2017 - The extent of this effect, however, will d epend on past home price appreciation in the community. The largest boost in revenues will come in communities where home prices have risen the most in past years.
https://lao.ca.gov/Publications/Report/3693