The 2021-22 Budget: Overview of the Governor's Budget

Jan 10, 2021 - Tax Reductions and Business Assistance Tax Refunds to Low-Income Californians. The Governor ’s budget proposes a one ‑time $600 tax refund to taxpayers who received the California Earned Income Tax Credit (EITC) for 2019 and taxpayers using an Individual Taxpayer Identification Number (ITIN) who will receive the EITC for 2020.
https://lao.ca.gov/Publications/Report/4309

With New Deficits Looming, California Will Weigh its Options for Allocating a Large Revenue Windfall

Dec 1, 2020 - Because this group accounts for a large portion of the state ’s tax revenues, tax collections proved to be somewhat insulated from the initial downturn. In fact, our revenue estimate for 2021 ‑22 now is very similar to what the Governor projected in his January 2020 (pre-pandemic) budget proposal.
https://lao.ca.gov/Publications/Report/4305

The 2021-22 Budget: California's Fiscal Outlook [Publication Details]

Nov 18, 2020 - In addition to The 2021-22 Budget: California’s Fiscal Outlook report and the accompanying The 2021-22 Budget: The Fiscal Outlook for Schools and Community Colleges report, several related posts on health and human services, economics and taxes, and other issues will be published in the coming days.
https://lao.ca.gov/Publications/Detail/4297

The 2021-22 Budget: California's Fiscal Outlook

Nov 18, 2020 - Recent Data on Tax Collections and Expenditures Consistent With Economic Picture. Recent data on actual tax collections and program caseloads have been consistent with a more positive economic picture, especially among high ‑income Californians.
https://lao.ca.gov/Publications/Report/4297

The 2020-21 Budget: Overview of the California Spending Plan (Final Version)

Oct 5, 2020 - First, the federal government approved the state ’s recently reauthorized managed care organization (MCO) tax for the period of January 1, 2020 t hrough June 30, 2023. Revenues from the new MCO tax offset about $1. 7  b illion in General Fund spending in Medi ‑Cal in 2020 ‑21.
https://lao.ca.gov/Publications/Report/4263

An Update on California’s Cash Management Situation

Aug 31, 2020 - Agency Cash Versus Controller ’s Cash The state ’s main tax revenue agencies (namely, the Franchise Tax Board and the California Department of Tax and Fee Administration) collect tax payments and then transmit those payments to the State Controller ’s Office.
https://lao.ca.gov/Publications/Report/4266

The 2020-21 Budget: Initial Comments on the Governor’s May Revision

May 17, 2020 - Tax credits reduce a business ’s tax bill directly, on a dollar ‑for ‑dollar basis. The largest business tax credit is the research and development credit. In addition, the administration proposes two actions to increase sales tax compliance on used car purchases; however, they do not count these as budget solutions.
https://lao.ca.gov/Publications/Report/4232

The 2020-21 Budget: California's Spring Fiscal Outlook

May 8, 2020 - Cash Management A Sizeable Cash Cushion Allows the State to Withstand the Delay in the Tax Filing Date … The state ’s sizeable reserve balances have contributed to a strong cash position in recent years.
https://lao.ca.gov/Publications/Report/4228

COVID-19 and California’s Evolving Fiscal Outlook

Mar 18, 2020 - Volatile Financial Markets Indicate Lower Capital Gains-Related Tax Revenue Taxes on capital gains are a significant source of state revenue. Even in “normal ” times, capital gains income is difficult to forecast because it correlates with stock market performance.
https://lao.ca.gov/Publications/Report/4203

Taking Stock of California’s Recession Readiness

Feb 12, 2020 - Not least are signs of slowing economic growth and risk from draft federal regulations regarding the types of fees and taxes the state can levy on healthcare providers. Therefore, in addition to reserves, the Legislature may want to consider the role of planned operating surpluses as a preemptive fiscal defense against a recession.
https://lao.ca.gov/Publications/Report/4156