LAO Publications

In so doin g, we have applied the same approach as with direct spending programs--that is, we have examined tax-related provisions referred to as tax expenditure programs (TEPs)--and recommen ded changes to those that are not achieving their stated purposes or are of a lower priority.
https://lao.ca.gov/publications?page=111&year=0&publicationType=0

LAO Publications

In so doin g, we have applied the same approach as with direct spending programs--that is, we have examined tax-related provisions referred to as tax expenditure programs (TEPs)--and recommen ded changes to those that are not achieving their stated purposes or are of a lower priority.
https://lao.ca.gov/Publications?page=111&year=0&publicationType=0

^[PDF] Sources and Uses of K12 Education Funding Growth 1982-83 through 1991-92

Analysis of the 1991-92 Tax Expenditure Budget: Overview and Detailed Compendium of Individual Tax Expenditure Programs (May 1991), Report No. 91-4. County Fiscal Distress: A Look at Butte County (December 1989).
https://lao.ca.gov/1991/082191_K12_Funding_Growth.pdf

An Initial Look at Effects of the COVID-19 Pandemic on Local Government Fiscal Condition

May 12, 2021 - Significant Reliance on Sales Tax Revenue. Many cities rely on sales tax revenue as a major revenue source for their budget. In the case of the 24 c ities most reliant on sales tax (the top 5 p ercent), sales and use tax collections in 2018 ‑ 19 c onstituted between 31 p ercent and 70 p ercent of total local revenues.
https://lao.ca.gov/Publications/Report/4428

^[PDF] OPTIONS FOR ADDRESSING THE STATE’S FISCAL PROBLEM

The report’s index categorizes options by type— caseload reduction, funding shift, improved efficiency, service reduction, one-time adjustment or deferral, federal tax conformity, and elimination or reduction of a tax expenditure.
https://lao.ca.gov/analysis_2002/options/budget_options_2002-03.pdf

^[PDF] Assessing Recent Changes to California Competes

Periodically reviewing tax expenditures such as California Competes is important because, like direct state expenditures, they have budgetary costs. Such reviews can help policymakers assess whether a tax expenditure is effective and merits continued financial support from the taxpayers.
https://lao.ca.gov/reports/2020/4213/changes-california-competes-033020.pdf

The 2020-21 May Revision: Revenue Proposals in the 2020-21 May Revision

May 20, 2020 - LAO Alternatives Eliminating or Modifying Other Tax Expenditures Worth Consideration. In addition to the business tax provisions put forward by the Governor, we suggest the Legislature —should it wish to pursue revenue solutions —consider alternative revenue options.
https://lao.ca.gov/Publications/Report/4238

The 2021-22 Budget: Business Tax Incentives

Jan 28, 2021 - These requirements make participation more costly, but they have led to greater transparency than the state typically provides regarding the use of tax expenditures. Benefits Occur Gradually. Historically, the usage rate of exclusions has peaked one to two years after the participant receives the award.
https://lao.ca.gov/Publications/Report/4327

^[PDF] Overview of the May Revision, Assembly, and Senate Budget Plans

Alternatively, some of the most severe cuts can be avoided by adopting selected revenue increases—from fees and other non-tax revenues, changes to tax expenditure programs, delays in previously scheduled tax reductions or expirations, and targeted tax increases.
https://lao.ca.gov/handouts/conf_comm/2010/Overview_Budget_Plans_2.pdf

1996-97 Perspectives and Issues: The Governor's Tax Reduction Proposal

Modify tax expenditure programs that are ineffective or inefficient in achieving objectives. These could include various income tax exclusions, exemptions, deductions, and credits . Reduce Marginal Income Tax Rates in Other Ways.
https://lao.ca.gov/analysis_1996/p965-1.html