The 2025-26 Budget: California's Fiscal Outlook

Nov 20, 2024 - Instead, much of the bounce appears to be tied to special forms of pay for high ‑income workers, such as bonuses and stock  compensation. Booming Stock Market Driving Income Growth. The recent run ‑up in the stock market, which appears tied to optimism surrounding artificial intelligence, is a primary driver of the rapid growth in pay to high ‑income workers.
https://lao.ca.gov/Publications/Report/4939

California New Car Registrations: February 2026 [EconTax Blog]

Apr 7, 2026 - After growing just 1 percent from December to February, registrations are still 5 percent below the average level over the last couple of years. This slump is becoming an increasingly worrisome sign for California ’s short-term economic trajectory.
https://lao.ca.gov/LAOEconTax/Article/Detail/855

California Labor Market Showing Broad Signs of Weakness [EconTax Blog]

Sep 30, 2025 - The average wage growth for California workers reached nearly 7 percent after the pandemic during the "Great Resignation " but has fallen to around 5 percent in 2025. This level remains slightly above the U.S. wage growth trend.  
https://lao.ca.gov/LAOEconTax/article/Detail/839

California Labor Market Showing Broad Signs of Weakness [EconTax Blog]

Sep 30, 2025 - The average wage growth for California workers reached nearly 7 percent after the pandemic during the "Great Resignation " but has fallen to around 5 percent in 2025. This level remains slightly above the U.S. wage growth trend.  
https://lao.ca.gov/LAOEconTax/Article/Detail/839

The 2026-27 Budget: Proposition 98 Guarantee and K-12 Spending Plan

Feb 4, 2026 - Several signs, however, suggest that the stock market has become overvalued. For example, the ratio of stock prices to corporate earnings (a measure of how expensive stocks are) is near historically high levels ( Figure  5 ).
https://lao.ca.gov/Publications/Report/5110

Income Tax Withholding Tracker [EconTax Blog]

Oct 4, 2022 - Most withholding payments are for employees ’ wages and salaries, but withholding is also due on bonuses and stock options received by employees. Withholding on stock options has made up a growing share of collections in recent years. 
https://lao.ca.gov/LAOEconTax/article/Detail/756

Income Tax Withholding Tracker [EconTax Blog]

Oct 4, 2022 - Most withholding payments are for employees ’ wages and salaries, but withholding is also due on bonuses and stock options received by employees. Withholding on stock options has made up a growing share of collections in recent years. 
https://lao.ca.gov/LAOEconTax/Article/Detail/756

Income Tax Withholding Tracker: August 1 - August 27 [EconTax Blog]

Sep 7, 2021 - Collections were up $2.24 billion (20.2 percent) over 2020-21 and $3.10 billion (30.2 percent) over 2019-20. The next graph shows federal income tax withholding since July 1 in 2020-21 and 2021-22. Through the 25th, federal withholding was up 18.9 percent from last year, slightly below the state ’s pace.  
https://lao.ca.gov/LAOEconTax/Article/Detail/692

MOU Fiscal Analysis: Bargaining Unit 19 (Health and Social Services/Professional)

Sep 1, 2023 - Specifically, eligible employees would receive a payment equal to 1 percent of base salary after 12 months, 2 percent of base salary after 24 months, 3 percent of base salary after 36 months, 4 percent of base salary after 48 months, 5 percent of base salary after 60 months, 6 percent of base salary after 72 months, and 7 percent of base salary after 84 months.
https://lao.ca.gov/Publications/Report/4797

The 2026-27 Budget: How to Use One-Time Revenue Improvements

Feb 20, 2026 - The Governor ’s budget also maintains a $7  billion withdrawal from the BSA in 2025-26. If a May Revision windfall exceeds the amount needed to fund the true up, we recommend the Legislature use those resources to reduce the size of this withdrawal.
https://lao.ca.gov/Publications/Report/5133