Evaluating State Economic Stimulus Proposals

Feb 1, 2021 - Be Cautious of Unintended Interactions. Unintended interactions between a new stimulus program and other federal, state, and local programs can reduce its effectiveness. Policymakers should carefully consider these potential interactions.
https://lao.ca.gov/Publications/Report/4331

The 2026-27 Budget: California Public Utilities Commission’s Implementation of AB 1207

Feb 10, 2026 - (For more information on recent changes to the cap-and-invest program, see our December 2025 publication, Overview of New Updates to the Cap-and-Invest Program .) Governor ’s Proposal Proposes $2.2  Million Ongoing for CPUC to Implement AB  1207.
https://lao.ca.gov/Publications/Report/5120

The 2026-27 Budget: California Competes Extension

Mar 18, 2026 - For awards made between 2014 and 2020, the recapture rate is almost 55  percent. This indicates that around half of the net job increases and investments promised in negotiated agreements ultimately never come to fruition or are not maintained long term.
https://lao.ca.gov/Publications/Report/5162

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

Feb 24, 2026 - For example, the amount emitters recently have had to pay for each ton of carbon dioxide equivalent they emit through the cap ‑and ‑invest program has been below $30 per ton and LCFS credits have been between $50 and $70 per ton.
https://lao.ca.gov/Publications/Report/5139

Overview of New Updates to the Cap-and-Invest Program

Dec 9, 2025 - Monitoring the program ’s implementation will be an important way for the Legislature to help ensure that the state is striking its intended balance between key goals and priorities. CARB ’s Regulations Could Have Important Implications for the Program.
https://lao.ca.gov/Publications/Report/5097

The 2021-22 Budget: Behavioral Health: Continuum Infrastructure Funding Proposal

Feb 17, 2021 - Below, we describe the interaction between the behavioral health continuum infrastructure funding proposal and two other major items from the Governor ’s budget. CalAIM SMI/SED Demonstration Opportunity Commitment.
https://lao.ca.gov/Publications/Report/4379

Implementing California’s Child Welfare Prevention Services Program

Jan 28, 2026 - In theory, counties will achieve foster care cost savings once they implement effective child welfare prevention services—meaning there is a natural incentive to invest in prevention programs. However, achieving those savings will require significant upfront investment, which may not be possible using only local funds.
https://lao.ca.gov/Publications/Report/5106

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - As shown in Figure  1 , many signs of an overly exuberant stock market are present today: measures of whether stocks are “expensive ” are at historically high levels, investors are borrowing more to buy stocks, and households are more invested in the stock market than they have been in at least 70  years.
https://lao.ca.gov/Publications/Report/5091

California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - These firms have invested heavily in building out data centers and on extraordinary pay packages for their key employees. This spending, along with gains to investors, has turbo-charged state income tax receipts.
https://lao.ca.gov/Publications/Report/5104

How Have Past Stock Market Downturns Affected Income Tax Revenue? [EconTax Blog]

Mar 9, 2026 - The meteoric rise in the value of these companies has led to sizable gains for their investors and their employees via stock options, which has led income tax collections to grow at double-digit rates.  
https://lao.ca.gov/LAOEconTax/article/Detail/852