The 2021-22 Budget: Medi-Cal Fiscal Outlook

Nov 18, 2020 - Assume Statutorily Scheduled Expiration of Managed Care Organization (MCO) Tax For a number of years, the state has imposed a tax on MCOs ’ Medi ‑Cal and commercial lines of business. The state ’s previous MCO tax expired at the end of 2018 ‑19 and, in 2019 ‑20, the Legislature reauthorized the MCO tax in similar but not identical form to the prior tax.
https://lao.ca.gov/Publications/Report/4299

Why is Venture Capital Funding a Useful Economic Indicator? [EconTax Blog]

Feb 18, 2021 - Many California firms th at relied on VC funding at various stages of their development went public in 2020, and this contributed to surprisingly strong growth in personal income tax revenue despite the deep recession caused by the pandemic.  
https://lao.ca.gov/LAOEconTax/Article/Detail/626

A New Method For Current Year Revenue Forecasting [EconTax Blog]

Sep 20, 2021 - To fill this void, our office recently developed a model to provide a monthly update of the forecast of current year collections from the state ’s “big three ” revenues (personal income, sales, and corporation taxes).
https://lao.ca.gov/LAOEconTax/Article/Detail/696

Snapshot of the California Economy: December 2020 [EconTax Blog]

Feb 4, 2021 - One the one hand, payrolls (as measured by state income tax withholding, which is disproportionately tied to earnings of higher-income individuals) and stock prices reached new highs in December. On the other hand, total employment in the state dropped slightly in December, unemployment remained widespread, and spending on restaurants and entertainment remains sever ely depressed.  
https://lao.ca.gov/LAOEconTax/Article/Detail/619

Issues That Could Impact Californians' Health Care Coverage in 2023 and Beyond

Dec 16, 2022 - As part of the federal Tax Cuts and Jobs Act of 2017, Congress effectively eliminated the federal individual mandate by setting the penalty for violating the coverage requirement to zero beginning in 2019.
https://lao.ca.gov/Publications/Report/4654

Cap-And-Trade Auction Update and GGRF Projections

Dec 6, 2021 - For example, the Legislature could use GGRF to provide lump sum rebates to households, reduce other state taxes (such as sales tax rates), or use the funds to reduce retail electricity rates. Importantly, each of these “revenue recycling” options could be structured in a way that maintains cap‑and‑trade’s incentive for households and businesses to reduce
https://lao.ca.gov/Publications/Report/4480

Funding for various brownfield-related activities. [Ballot]

Nov 29, 2021 - This measure would allow the state to borrow up to $2.7  billion by selling additional general obligation bonds to investors, who would be repaid with interest using the state ’s general tax revenues.
https://lao.ca.gov/BallotAnalysis/Initiative/2021-034

The 2021-22 Spending Plan: Human Services

Nov 22, 2021 - The state has funded the restoration of IHSS service hours with General Fund since 2016 ‑17 so long as the managed care organization (MCO) tax established in 2016 was in place. While the 2016 MCO tax expired at the end of 2018 ‑19, the 2019 ‑20 budget continued the use of General Fund to restore IHSS service hours, subject to potential suspension on December 31, 2021.
https://lao.ca.gov/Publications/Report/4476/4

The 2022-23 Budget: Fiscal Outlook for Schools and Community Colleges

Nov 17, 2021 - The Legislature can respond to excess revenues by (1)  lowering tax revenues, (2) splitting the excess between taxpayer rebates and one ‑time payments to school and community college districts, or (3) appropriating more money for purposes excluded from the limit.
https://lao.ca.gov/Publications/Report/4473

Cal Grant Spending [EdBudget]

Jul 20, 2020 - Also does not include an offsetting $5 million decrease in College Access Tax Credit (CATC) funds due to a projected decline in available revenues in the account.  b Less than $500,000 or 0.05 percent.
https://lao.ca.gov/Education/EdBudget/Details/402