The 2026-27 Budget: California Competes Extension

Mar 18, 2026 - Empirical Evidence Points to Effectiveness of Tax Credit for Job Creation. Recent evidence from academic research has found that the California Competes tax credit is relatively effective at increasing employment and providing an economic benefit to the state, especially relative to other tax expenditure programs in California and elsewhere.
https://lao.ca.gov/Publications/Report/5162

Comparing Options to Raise and Lower Taxes [Publication Details]

Mar 24, 2026 - Comparing Options to Raise and Lower Taxes [Publication Details] Translate Our Website This Google ™ translation feature provided on the Legislative Analyst's Office (LAO) website is for informational purposes only.
https://lao.ca.gov/Publications/Detail/5170

New IRS Data Show Pandemic Outmigration Eased in 2023 [EconTax Blog]

Apr 17, 2026 - Forgone tax collections due to net outmigration peaked at 1.6 percent of 2022-23 PIT revenue, three times higher (about 1 percentage point) than pre-pandemic levels. Our assessment of the 2023 IRS migration data suggests that net domestic outmigration reduced income tax revenue growth in 2023-24 by nearly $1 billion (0.7 percent).  
https://lao.ca.gov/LAOEconTax/Article/Detail/854

New IRS Data Show Pandemic Outmigration Eased in 2023 [EconTax Blog]

Apr 17, 2026 - Forgone tax collections due to net outmigration peaked at 1.6 percent of 2022-23 PIT revenue, three times higher (about 1 percentage point) than pre-pandemic levels. Our assessment of the 2023 IRS migration data suggests that net domestic outmigration reduced income tax revenue growth in 2023-24 by nearly $1 billion (0.7 percent).  
https://lao.ca.gov/LAOEconTax/article/Detail/854

The 2026-27 Budget: Medi-Cal Analysis

Mar 2, 2026 - Medi ‑Cal ’s share of General Fund expenditures was increasing, contributing to the budget problem that had emerged between the Governor ’s budget and  May  Revision. 2025 ‑26 Enacted Budget Included Several Solutions in Medi ‑Cal Program.
https://lao.ca.gov/Publications/Report/5146

How Have Past Stock Market Downturns Affected Income Tax Revenue? [EconTax Blog]

Mar 9, 2026 - How Do Stock Market Downturns Affect State Income Tax Revenue? Major Market Downturns Deeply Affect State Income Taxes.   The figure below tracks income tax revenue following the seven long-lasting downturns noted earlier.
https://lao.ca.gov/LAOEconTax/Article/Detail/852

How Have Past Stock Market Downturns Affected Income Tax Revenue? [EconTax Blog]

Mar 9, 2026 - How Do Stock Market Downturns Affect State Income Tax Revenue? Major Market Downturns Deeply Affect State Income Taxes.   The figure below tracks income tax revenue following the seven long-lasting downturns noted earlier.
https://lao.ca.gov/LAOEconTax/article/Detail/852

Understanding $100 Billion in Spending Growth: Causes and Fiscal Implications

Apr 28, 2026 - IT expenditures span both employee compensation —including salaries and benefits of state IT workers —and operating expenses and equipment, which include, for example, software licenses, hardware, and cloud services.
https://lao.ca.gov/Publications/Report/5176

How Will the Changing Landscape Affect California’s Health Care System? [Publication Details]

May 4, 2026 - In this report, we analyze how the changing fiscal and policy landscape will affect California’s health care system, including health coverage, hospitals, clinics, private health insurance, and county programs. We also provide key issues to consider regarding these effects.
https://lao.ca.gov/Publications/Detail/5180

How Will the Changing Landscape Affect California’s Health Care System?

May 4, 2026 - For example, as we noted in our 2025 report, the state likely will n eed to reduce two key provider taxes —a tax on health plans and a fee on private hospitals —to comply with the new limit under H.R. 1.
https://lao.ca.gov/Publications/Report/5180