The Quiet Transformation in California’s Cash Management [Publication Details]

Aug 29, 2019 - In this Fiscal Perspective, Legislative Analyst Gabriel Petek writes about how the building of large budget reserve balances has quietly transformed California’s cash management in recent years.
https://lao.ca.gov/Publications/Detail/4091

The Quiet Transformation in California’s Cash Management

Aug 29, 2019 - California’s constitutional balanced budget requirement notwithstanding, some form of short-term borrowing is necessary because cash receipts and disbursements within the year do not line up. General Fund disbursements are spaced relatively evenly throughout the fiscal year while a majority of tax collections are received later in the year.
https://lao.ca.gov/Publications/Report/4091

Amid Good Fiscal Times, Planning for the Future Is Crucial

May 21, 2019 - New Ongoing Spending in the May Revision Is Nearing the Sustainable Limit To assess whether the state has capacity for new ongoing spending commitments, we estimate the difference between revenues and expenditures in the budget year and for several years ahead.
https://lao.ca.gov/Publications/Report/4051

The 2019-20 May Revision: LAO Economic Outlook

May 12, 2019 - The PE ratio (Shiller PE ratio) currently is 30, whereas the average since 1990 is 25. Overpriced or not, stock markets perennially create uncertainty for the economy and the state ’s budget, as stock prices are subject to large, unpredictable swings at any time.
https://lao.ca.gov/Publications/Report/4036

The 2019-20 May Revision: LAO Revenue Outlook

May 12, 2019 - Corporation Tax (CT) CT Collections Surged in the Current Year. With two collection months remaining in the fiscal year, we expect that CT revenues will exceed the administration ’s January estimate by well over 10  percent.
https://lao.ca.gov/Publications/Report/4037

The 2019-20 May Revision: Initial Comments on the Governor’s May Revision

May 12, 2019 - Compared to January, the administration ’s estimates of revenues and transfers (excluding reserve deposits) have increased by $3.2  billion across the three fiscal years of 2017 ‑18 to 2019 ‑20. This upward revision is primarily the net effect of a few factors.
https://lao.ca.gov/Publications/Report/4039

The 2019-20 May Revision: Sales Tax Exemptions for Diapers and Menstrual Products

May 12, 2019 - Public schools Relatively high ‑poverty middle schools and high schools must provide free menstrual products. Human Services Eligibility criteria and grant amounts not adjusted for menstrual expenses.
https://lao.ca.gov/Publications/Report/4040

The 2019-20 May Revision: Opportunity Zones

May 11, 2019 - If investors hold on to the investment for multiple years, their tax liability on their deferred capital gains can be reduced. In addition, investors that maintain their investment for at least ten years will not be taxed on any capital gains earned on their Opportunity Zone investment.
https://lao.ca.gov/Publications/Report/4038

An Extraordinary Moment in California's Fiscal History

Apr 11, 2019 - In our 2018 November fiscal outlook, we estimated that in order to cover the budget problem associated with a moderate recession without cutting programs or raising taxes, the state would require budget reserves of $25 billion.
https://lao.ca.gov/Publications/Report/4003

The 2019-20 Budget: Undoing California’s Outstanding Budgetary Deferrals

Mar 26, 2019 - California ’s Outstanding Budgetary Deferrals The state has already undone billions of dollars in outstanding budgetary deferrals, most notably, those involving payments to schools and community colleges.
https://lao.ca.gov/Publications/Report/3988