The 2024-25 Budget: Governor's Office of Business and Economic Development

Feb 20, 2024 - We estimate the Governor ’s budget predicts the state ’s 2024-25 budget will need to address a $58 billion deficit . In December, our office predicted a somewhat large deficit of $68 billion . Since then, recent data has continued to point to the budget problem being larger than the Governor’s budget assumes.
https://lao.ca.gov/Publications/Report/4846

California’s Low-Wage Workers and Minimum Wage

Mar 11, 2024 - To shed light on this issue, we next compare the statewide minimum wage to housing costs across California ’s 58 counties. Measuring Housing Affordability. To assess housing affordability for minimum-wage workers, we compare monthly earnings for full-time workers making the main minimum wage in each county to HUD ’s estimate of “fair market rent ” for housing in that county.
https://lao.ca.gov/Publications/Report/4878/3

The 2025-26 California Spending Plan: Other Provisions

Oct 16, 2025 - When enacted, the budget assumed annual General Fund savings of $500  million in 2025-26 that was expected to grow to roughly $2  billion General Fund by 2028-29 across three departments —California Departments of Corrections and Rehabilitation (CDCR), Health Care Services (DHCS), and Social Services.
https://lao.ca.gov/Publications/Report/5081

Fixing Unemployment Insurance

Dec 2, 2024 - During the phase ‑in period, the state also entered the dot ‑com recession. These two cost pressures absorbed the remaining flexibility in the state ’s UI tax system. As  shown in Figure  4 , the state began this period in Schedule C but quickly moved to Schedule F+, the highest tax schedule, where it has remained since.
https://lao.ca.gov/Publications/Report/4943

The 2022-23 Budget: Governor’s Office of Business and Economic Development Proposals

Feb 11, 2022 - Consequently, Visit California has increased its net assets from $20  million at the beginning of 2019 ‑20 to $58  million by the end of 2021 ‑22. Additional State Funding for Marketing Appears Unnecessary.
https://lao.ca.gov/Publications/Report/4529

The 2025-26 Budget: Governor’s Office of Business and Economic Development

Mar 18, 2025 - In addition, each applicant must propose to do one of the following: (1)  create 500 new full-time jobs, (2)  make an investment of at least $10  million, or (3)  create jobs or make an investment in a high-poverty or high-unemployment area.
https://lao.ca.gov/Publications/Report/5018

The 2022-23 Budget: Federal Tax Conformity for Federal Business Assistance

Jan 26, 2022 - The administration estimates that this change would reduce state tax revenues by about $500  million over several years. LAO Comments Proposal Consistent With Previous Legislative Action. Assembly Bill  80 partially conformed state law with federal tax treatment of other federal pandemic ‑related economic relief programs.
https://lao.ca.gov/Publications/Report/4501

Tax Credit Expansions in the American Rescue Plan

Apr 13, 2021 - Child Tax Credit Under prior law, the CTC provided filers with income below $200,000 ($400,000 for joint filers) a credit of up to $2,000 for every dependent from ages 0 to 16, and up to $500 for dependents 17 and older.
https://lao.ca.gov/Publications/Report/4410

The 2021-22 Budget: Business Tax Incentives

Jan 28, 2021 - In 2018, more than 75  p ercent of total income from S corporations and partnerships went to filers with more than $500, 000 o f income. Taxpayers with incomes over $500, 000 m ake up about 2  p ercent of all taxpayers.
https://lao.ca.gov/Publications/Report/4327

The 2023-24 Budget: California's Film Tax Credit

Feb 28, 2023 - From 2017  to 2021, around $500  million in credits ($275  million from Program  2.0) have been claimed against corporation taxes. Over the same time period, around $300  million in credits were claimed against the sales tax.
https://lao.ca.gov/Publications/Report/4713