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 2022-23 Budget: Multiyear Budget Outlook

May 24, 2022 - Every dollar in tax revenues that the state collects above the limit must be spent on purposes that meet SAL requirements or returned to taxpayers. As a result, higher revenues would result in dollar ‑for ‑dollar increases in SAL  requirements.
https://lao.ca.gov/Publications/Report/4602

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 2021-22 Budget: Initial Comments on the Governor’s May Revision

May 17, 2021 - If the Legislature wants to make different decisions about this spending (without statutory changes or fund shifts), it can either: (1)  use the funds to make tax rebates and additional payments to schools, (2)  spend on other SAL-excluded purposes, or (3)  use the funds to reduce taxes.
https://lao.ca.gov/Publications/Report/4432

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

The 2020-21 Budget: Overview of the Governor's Budget

Jan 13, 2020 - Recently, corporation tax collections have grown faster than anticipated while personal income tax collections have grown somewhat slower. The administration assumes that this pattern will continue. This is because they attribute the pattern to partnerships, which are taxed under the personal income tax, changing to corporations in response to 2017 federal tax changes.
https://lao.ca.gov/Publications/Report/4135

The 2021-22 Budget: The Governor’s Proposition 2 Proposals

Apr 26, 2021 - Under Proposition  2, the state must continue to deposit funds into the BSA until it reaches a threshold balance of 10  percent of General Fund tax revenue. Once the BSA reaches this threshold, required deposits that would bring the fund above 10  percent of General Fund taxes instead must be spent on infrastructure.
https://lao.ca.gov/Publications/Report/4418

The 2021-22 Budget: Initial Comments on the Governor’s May Revision

May 17, 2021 - CAC = California Arts Council; CalVet = California Department of Veterans Affairs; CDE = California Department of Education; CDFA = California Department of Food and Agriculture; CDI = California Department of Insurance; CDT = California Department of Technology; SOC = Security Operations Center; IT = information technology; CMD = California Military Department; CPUC = California Public Utilities
https://lao.ca.gov/Publications/Report/4432/6

The Definition of Qualified Capital Outlay for the State Appropriations Limit

Feb 18, 2022 - Appropriations subject to the limit are calculated by taking proceeds of taxes and reducing them by excluded spending. Statutory Definition of Qualified Capital Outlay. One important SAL exclusion is qualified capital outlay.
https://lao.ca.gov/Publications/Report/4547

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