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Recent Changes to State and County IHSS Wage and Benefit Costs

December 14, 2018 - In this post, we (1) explain how the scheduled state minimum wage increases impact IHSS wages and state and county costs, (2) describe the recent temporary and permanent changes to the state and county cost-sharing structure for IHSS wage and benefit increases, and (3) explain how these changes could impact county wage decisions and costs for the state.


Report

The Great Recession and California's Recovery

December 13, 2018 - Nearly ten years ago today, Governor Schwarzenegger's proposed budget for the upcoming fiscal year projected a $42 billion deficit. This shortfall was stunning, but in fact, turned out to be optimistic. In the months that followed, the Governor released three more budget projections, each one addressing even larger shortfalls. California was called "ungovernable," "a wreck," and "a failed state."

Today, California's fiscal position is dramatically different. While the budget still faces challenges, the state has made undeniable progress: the Legislature has enacted budgets that consistently increased savings, addressed many of the state's outstanding debts, and most recently passed a budget with a higher level of reserves than the state has seen in decades. Few could have predicted this turnaround.

So how did the state achieve this feat? This visual guide to the Great Recession and California's recovery tells the story of the budget over the last ten years.


Report

The 2020 Census: Potential Impacts on California

December 13, 2018 - In this report, we first provide information on what the Census is. Second, we discuss how the Census is conducted—including the steps the federal government has taken to date and what it plans to do over the next few years to conduct the 2020 Census. (We also describe state efforts to supplement these federal activities.) We then discuss the likelihood of an undercount in California in 2020. Finally, we discuss the implications of an undercount for California both in terms of representation in Congress and federal funding.


Report

Child Care Attendance Records: Comparing Paper and Electronic Processes

December 12, 2018 - The Supplemental Report of the 2018-19 Budget Act required our office to identify the pros and cons of Alternative Payment agencies using a paper versus electronic process to collect monthly child care attendance records. This report fulfills this requirement.


Report

Evaluation of a Sales Tax Exemption for Certain Manufacturers

December 11, 2018 - The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) administers a sales tax exemption for equipment used for certain manufacturing activities. (Many people refer to this program as an exclusion rather than an exemption.) Under current law, this program will end on January 1, 2021. Public Resources Code 26011.8(g) requires our office to report on the effectiveness of the program—including its economic, fiscal, and environmental effects—by January 1, 2019. This report fulfills that statutory requirement.


Report

Cal Facts 2018

December 6, 2018 - With a state as big, as populous, and as complex as California, quickly summarizing how its economy or state budget works is impossible. Instead, Cal Facts is a visual guide—using a variety of different charts—to the state's economy, revenues, and major program trends.


Presentation

California's Fiscal Outlook: CSBA Presentation

November 29, 2018 - Presented to: California School Boards Association Annual Education Conference


Report

Taxation of Sugary Drinks

November 26, 2018 - Taxes on sugary drinks have become increasingly common in recent years. In June 2018, the Legislature passed a law (Chapter 61 of 2018 [AB 1838, Committee on Budget]) prohibiting local governments from levying such taxes (and other taxes on groceries) through 2030. The law stated the Legislature’s intent to regulate the imposition and collection of such taxes to the exclusion of local action. As such, the Legislature may face the following decisions: (1) Should the state levy an excise tax on sugary drinks? and (2) If so, how should the tax be designed? This report provides information and perspectives for the Legislature to consider as it weighs these choices.


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How CalFire is Spending Recent Forest Health Funds

November 15, 2018 - In this post, we provide a summary of how CalFire is spending Greenhouse Gas Reduction Fund dollars provided in the 2017-18 budget package. We focus primarily on CalFire’s Forest Health Program, and identify issues for the Legislature to consider as it oversees and guides future expenditures of forest health funding.


Handout

Disability Among California’s Seniors: A Long-Term Outlook

November 14, 2018 - Senate Health Committee and Senate Budget and Fiscal Review Subcommittee No. 3 on Health and Human Services


Post

Evolution of the Balance of the Budget Stabilization Account

November 14, 2018 - This post discusses the various types of deposits the Legislature has made into the Budget Stabilization Account (BSA) that now compose its balance. We also present our projections of the estimated balance in the BSA under our recently published report, The 2019-20 Budget: California’s Fiscal Outlook.

In addition to this report, you can find the main California's Fiscal Outlook report along with a collection of other fiscal outlook material on our fiscal outlook budget page.


Post

Fiscal Outlook: In-Home Supportive Services (IHSS)

November 14, 2018 - In this web post we discuss our near- and long-term costs projections for the In-Home Supportive Services (IHSS) Program and significant cost drivers and savings.

In addition to this report, you can find the main California's Fiscal Outlook report along with a collection of other fiscal outlook material on our fiscal outlook budget page.


Post

Fiscal Outlook: Medi-Cal

November 14, 2018 - This web post provides detail on our projections and assumptions related to General Fund spending in Medi-Cal for the years 2018-19 through 2022-23. In the near term, we project Medi-Cal spending to grow to $23.9 billion in 2019-20. Over the long term, we project General Fund spending in Medi-Cal to grow to up to around $28 billion.

In addition to this report, you can find the main California's Fiscal Outlook report along with a collection of other fiscal outlook material on our fiscal outlook budget page.


Report

The 2019-20 Budget: Proposition 98 Outlook

November 14, 2018 - In this report, we examine how the minimum guarantee might change over the next several years and discuss the factors likely to be driving those changes. We then examine key aspects of district budgets—focusing on the main cost pressures facing districts over the next several years.

In addition to this report, you can find the main California's Fiscal Outlook report along with a collection of other fiscal outlook material on our fiscal outlook budget page.


Report

The 2019-20 Budget: California's Fiscal Outlook

November 14, 2018 - The budget is in remarkably good shape. Under our estimates of revenues and spending, the state’s constitutional reserve would reach $14.5 billion by the end of 2019-20. In addition, we project the Legislature will have nearly $15 billion in resources available to allocate in the 2019-20 budget process. The Legislature can use these funds to build more reserves or make new one-time and/or ongoing budget commitments.

The longer-term outlook for the state also is positive. Under our economic growth scenario, the state would have operating surpluses averaging around $4.5 billion per year (but declining over time). Under our recession scenario, the state would have enough reserves to cover a budget problem—provided the Legislature used all of the available resources in 2019-20 to build more reserves.

Along with the Fiscal Outlook, you can find a collection of other fiscal outlook material on our fiscal outlook budget page.