Updating the California Necessities Index

Aug 14, 2025 - Second, like the current formula, alternatives should provide an intuitive way to judge changes in the cost of necessities. This provides transparency to benefit recipients when they assess changes to the funds they receive.
https://lao.ca.gov/Publications/Report/5065

Updating the California Necessities Index [Publication Details]

Aug 14, 2025 - Recent changes were made to the publication of statistics required to calculate the California Necessities Index, which is used to adjust certain benefit rates and cost-of-living adjustments. In this brief, we provide details on the changes and evaluate alternatives for the index that require only currently available data and conform to the original intent of the index.
https://lao.ca.gov/Publications/Detail/5065

Evaluating State Economic Stimulus Proposals

Feb 1, 2021 - How Large Are the Administrative Costs? All programs have costs for public administration. The administrative costs of an economic stimulus program ideally should be a small share of the overall cost.
https://lao.ca.gov/Publications/Report/4331

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

Feb 23, 2026 - In 2026 ‑27, $2.8  million of these appropriations would come from the Compliance Fund to pay for costs in the Tobacco Licensing Program, while $0.5  million would come from the Cannabis Tax Fund to pay for costs in the Cannabis Tax Program. $0.2  million of these costs would shift from the Compliance Fund to the Cannabis Tax Fund starting in 2027 ‑28.
https://lao.ca.gov/Publications/Report/5132

The 2026-27 Budget: State Mandate—Disclosure Requirements and Deferral of Property Taxation

Feb 19, 2026 - …But Reimburse County for Previously Incurred Costs. We recommend the state reimburse Los Angeles County for costs already incurred. This is because the county has already performed the state-required activities and, even given the current budget climate, the cost to the state (a total of about $30,000 one time) is minimal.
https://lao.ca.gov/Publications/Report/5130

The 2026-27 Budget: California Competes Extension

Mar 18, 2026 - If the Legislature is concerned about the potential for a short-term spike in the program ’s fiscal costs, especially in light of the state ’s structural budget issues, some modifications could be considered.
https://lao.ca.gov/Publications/Report/5162

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 2025-26 California Spending Plan: Other Provisions

Oct 16, 2025 - Across all of the agreements, the budget assumes that these agreements reduce state departmental costs by $750 million ($370 million General Fund). Agreements Shift General Fund Costs From Retiree Health Prefunding to Pension Liabilities.
https://lao.ca.gov/Publications/Report/5081/

The 2025-26 Budget: Update on Implementation of New Firearm and Ammunition Tax

Feb 19, 2025 - In the absence of this loan, CDTFA absorbed Chapter  231 implementation costs within its existing budget. Funds Allocated to CDTFA and CalVIP. Chapter  231 first requires the deduction of CDTFA costs.
https://lao.ca.gov/Publications/Report/4970

The 2025-26 Budget: CDTFA’s Tobacco Programs

Feb 14, 2025 - CDTFA ’s estimated cost to implement AB  3218 and SB  1230 is $3.3  million in 2024-25, $5.5  million per year in 2025-26 and 2026-27, and $3.1  million in 2027-28 and ongoing. The new laws create penalties that could raise revenue to offset some of these costs.
https://lao.ca.gov/Publications/Report/4966