The 2022-23 Budget: Temporary Limits on Business Tax Provisions

Jan 26, 2022 - This 2022-23 budget post provides background on temporary limits on the use of net operating loss deductions and business tax credits. It describes the Governor’s proposal to lift these limits one year early and provides some comments to the Legislature.
https://lao.ca.gov/Publications/Report/4500

The 2026-27 Budget: CDTFA’s Cannabis and Tobacco Programs

Feb 23, 2026 - We recommend that the Legislature adopt a modified version of this proposal and conside r whether new provisional language is needed to prevent such problems from recurring. Background Cannabis Tax Program.
https://lao.ca.gov/Publications/Report/5132

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 - This change is estimated to reduce state r evenues by $135  million in fiscal year 2025-26 and $85  million annually thereafter. Excludes Wildfire Settlements From State Income Taxation. The budget package provides a blanket exemption for settlements related to any wildfire occurring between tax years 2021 and 2029.
https://lao.ca.gov/Publications/Report/5081

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

Mar 18, 2025 - The NSTC is a cooperative public-private effort to advance semiconductor research and development (R &D). Natcast is the nonprofit organization in charge of the NSTC. Natcast Currently Relies on Federal Funding.
https://lao.ca.gov/Publications/Report/5018

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 2021-22 Budget: Business Tax Incentives

Jan 28, 2021 - For example, the Legislature could supplement the Governor ’s $ 100  m illion by ( 1)  r olling over unused funds from the 2020 Main Street Credit and ( 2)  r edirecting $ 250  m illion from the Governor ’s California Competes grant proposal to this program.
https://lao.ca.gov/Publications/Report/4327

The 2023-24 Budget: Considering Inflation's Effects on State Programs

Nov 16, 2022 - Key factors contributing to the current uncertainty include the degree to which businesses and workers begin to expect heightened inflation in future years, the degree to which actions by the Federal R eserve to reduce inflation are successful, and changes in geopolitical events affecting food and energy prices.
https://lao.ca.gov/Publications/Report/4647