The 2025-26 Budget: Overview of the Governor's Budget

Jan 13, 2025 - New Tax Expenditures of $150   Million. The Governor ’s budget includes some revenue proposals, which would expand existing tax expenditures and create new ones. This includes increasing the existing film tax credit from $330  million to $750  million per year and excluding some military retirement income from taxation.
https://lao.ca.gov/Publications/Report/4951

The 2025-26 Budget: Natural Resources and Agriculture Discretionary Spending Proposals

Feb 18, 2025 - As we discuss in our January 2025 report, The 2025‑26 Budget: Overview of the Governor’s Budget , the Governor proposes $2.2 billion in actions that would create capacity in the General Fund to support $570 million of discretionary proposals (including the three proposals discussed in this brief), $150 million of tax expenditures, and a larger discretionary reserve than the state typically plans.
https://lao.ca.gov/Publications/Report/4967

The 2025-26 Budget: Cap-and-Trade Reauthorization and Greenhouse Gas Reduction Fund Proposals at May Revision

May 19, 2025 - Since the passage of AB  398 in 2017 (with a two-thirds vote of both houses of the Legislature), GGRF is considered akin to a tax. As such, it is a flexible funding source that can be used to help meet the state ’s most important activities (similar to the General Fund).
https://lao.ca.gov/Publications/Report/5049

The 2025-26 Budget: Cap-and-Trade Expenditure Plan

Feb 12, 2025 - Assessment Governor ’s Proposal Maintains Agreed ‑Upon Expenditure Plan. We find the Governor ’s GGRF proposal to be largely consistent with the expenditure plan agreed to in 2024 ‑25. (The one relatively small modification is related to the proposed fund shift for CERIP.)
https://lao.ca.gov/Publications/Report/4960

Assessing California’s Climate Policies—Cap-and-Trade Reauthorization

May 7, 2025 - Emitters pay for allowances, similar to the way they would pay a tax on their GHG emissions. A key difference between allowances and taxes is how the revenues are allocated. In the case of taxes, all of the revenues come directly to the state.
https://lao.ca.gov/Publications/Report/5042

The 2025-26 Budget: Cap-and-Trade Expenditure Plan [Publication Details]

Feb 12, 2025 - The 2025-26 Budget: Cap-and-Trade Expenditure Plan [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/4960

The 2025-26 Budget: Various California Air Resources Board Proposals

Feb 24, 2025 - However, in our view, such processes are not an adequate substitute for decisions made by the Legislature, which is the state’s elected body charged with determining overall state fee and expenditure policies.
https://lao.ca.gov/Publications/Report/4980

Frequently Asked Questions About Wildfires in California

Jan 28, 2025 - As shown in the figure, CalFire’s annual expenditures from the E-Fund have varied depending on factors such as the severity of a given wildfire season. (E-fund expenditures can also include reimbursements from federal and local governments related to firefighting activities CalFire undertakes on their behalf.)
https://lao.ca.gov/Publications/Report/4952

The 2025-26 Budget: State Mandate—Santa Ana Regional Water Quality Control Board

May 5, 2025 - Proposition  218 amended the Constitution to require voter approval for new or increased local taxes, assessments, and property-related fees. However, for certain property-related services —water, sewer, and refuse collection —local governments can raise fees without voter approval unless a majority of affected property owners submit written protests (majority protest).
https://lao.ca.gov/Publications/Report/5039

The 2025-26 Budget: Proposition 4 Spending Plan

Feb 12, 2025 - In addition, the Legislature made bond expenditures subject to annual legislative appropriation (rather than continuously appropriating the funds), which gives it the chance to stay actively involved in directing funds to meet its priorities.
https://lao.ca.gov/Publications/Report/4958