The 2026-27 Budget: Governor’s Sustainable Aviation Fuel Tax Credit Proposal

Feb 24, 2026 - Annual reduction of $49  million to transportation funding that the state provides to cities and counties for work on their local streets and roads. State transportation funding suballocated to cities and counties for these purposes is projected to be around $3.9  billion annually —meaning this proposal would result in a reduction of about 1   percent each year.
https://lao.ca.gov/Publications/Report/5139

The 2026-27 Budget: State Mandate—Disclosure Requirements and Deferral of Property Taxation

Feb 19, 2026 - Additionally, Chapter  712 required Los Angeles County to print a disclosure on tax bills that provides a “brief summary ” of both the property tax relief under Proposition  19 and Chapter  712 ’s property tax deferment provisions.
https://lao.ca.gov/Publications/Report/5130

The 2026-27 Budget: Medi-Cal Analysis

Mar 2, 2026 - Like community engagement requirements, more frequent renewals are also expected to increase administrative workload for county eligibility systems, at least in the short run. Federal Changes for Certain Immigrant Groups Create State Fiscal Pressure.
https://lao.ca.gov/Publications/Report/5146

Property tax rules for inherited property. [Ballot]

Jan 21, 2026 - Effects on County Administrative Costs. County governments administer the property tax. The measure ’s changes could affect counties ’ costs to do so. The net effect on county administrative costs is unclear but likely would not exceed the low tens of millions of dollars annually.
https://lao.ca.gov/BallotAnalysis/Initiative/2025-035

The 2026-27 Budget: Governor’s Sustainable Aviation Fuel Tax Credit Proposal [Publication Details]

Feb 24, 2026 - The 2026-27 Budget: Governor’s Sustainable Aviation Fuel Tax Credit Proposal [Publication Details] Description: In this brief, we analyze the Governor's proposal to create a new credit against diesel excise tax liability to incentivize the use of sustainable aviation fuel in California.
https://lao.ca.gov/Publications/Detail/5139

The 2026-27 Budget: Medi-Cal Analysis [Publication Details]

Mar 2, 2026 - In this report, we analyze the Governor’s budget for Medi-Cal, with a focus on base spending trends, changes to provider taxes, implementation of new H.R. 1 rules, oversight over enacted budget solutions, and considerations for identifying additional savings in Medi-Cal.
https://lao.ca.gov/Publications/Detail/5146

The 2026-27 Budget: CDTFA’s Cannabis and Tobacco Programs

Feb 23, 2026 - Background Cannabis Tax Program. CDTFA ’s Cannabis Tax Program administers a 15  percent excise tax on retail sales of cannabis products. Some of the revenues from this tax pay for CDTFA ’s administration of the program, including enforcement activities.
https://lao.ca.gov/Publications/Report/5132

The 2026-27 Budget: CDTFA’s Cannabis and Tobacco Programs [Publication Details]

Feb 23, 2026 - In this post, we discuss three Governor’s budget proposals for the Department of Tax and Fee Administration’s (CDTFA’s) cannabis and tobacco programs.
https://lao.ca.gov/Publications/Detail/5132

The 2026-27 Budget: Food Assistance Programs

Feb 18, 2026 - (The state is seeking waivers under the tighter rules on a county-by-county basis and has obtained waivers for several counties.) CDSS estimates that there are about 954,800 individuals that fit the expanded ABAWD criteria (compared to about 345,400 individuals who are estimated to meet the prior criteria).
https://lao.ca.gov/Publications/Report/5126

Cannabis Tax Revenue Update (2025 Q4) [EconTax Blog]

Feb 26, 2026 - Proposition 64 created two excise taxes on cannabis: a retail excise tax and a cultivation tax. Chapter 56 of 2022 (AB 195, Committee on Budget) eliminated the cultivation tax on July 1, 2022. Preliminary Total for Fourth Quarter of 2025: $145 Million.
https://lao.ca.gov/LAOEconTax/Article/Detail/851