New Infrastructure Legislation: Summary and Issues for Legislative Oversight

Aug 8, 2023 - Under the legislation, the funding must meet certain other requirements, including that its use be consistent with the state ’s Scoping Plan for Achieving Carbon Neutrality and state law and not require the expenditure of additional state funds.
https://lao.ca.gov/Publications/Report/4785

Property taxes. [Ballot]

Aug 4, 2023 - How Is a Property Tax Bill Calculated? Each annual property tax bill is equal to the taxable value of the property multiplied by the property tax rate. The typical property tax rate is 1.1  percent. In the year a new owner takes over a property, its taxable value typically is its purchase price.
https://lao.ca.gov/BallotAnalysis/Initiative/2023-005

U.S. Retail Sales Update: June 2023 [EconTax Blog]

Jul 18, 2023 - U.S. retail sales have grown 1.1 percent over the last 3 months and 1.5 percent over the last 12 months. Retail sales growth has outpaced inflation over the last 3 months, but not over the last 12 months.
https://lao.ca.gov/LAOEconTax/Article/Detail/780

Mental Health Services Act: Proposed Restructuring of the MHSA Funding Categories and Impacts on County Spending

Jul 13, 2023 - Approved by voters in 2004, the MHSA places a 1  percent tax on personal income over $1  million and dedicates the associated revenues to mental health services. The vast majority ­ of MHSA revenues —at least 95   percent —goes directly to counties, which use it to support a variety of services for individuals with or at risk of mental illness.
https://lao.ca.gov/Publications/Report/4782

Mental Health Services Act: Revenue Volatility and the Governor’s Proposal to Reduce Allowable County Reserves

Jul 13, 2023 - While the degree to which expenditures on these other activities would squeeze out potential reserve deposits under the Governor ’s proposal is unclear, we think imposing caps on both reserve deposits and cumulative reserve balances may be overly constraining.
https://lao.ca.gov/Publications/Report/4780

Mental Health Services Act: Proposed Change in Mental Health Services Oversight and Accountability Commission’s Role

Jul 13, 2023 - The department collects MHSA revenue and expenditure data, reviews prudent reserve levels, and monitors whether county expenditures match county planning documen ts. DHCS also oversees the Mental Health Service Fund (the special fund into which MHSA revenues are deposited) and calculates whether any county MHSA fund balances are subject to reversion.
https://lao.ca.gov/Publications/Report/4781

Updated Unemployment Insurance Fund Forecast Shows Structural Deficit [EconTax Blog]

Jul 7, 2023 - Employers pay regular UI payroll taxes into the fund. These payroll taxes are used to pay out benefits. In January and May each year, EDD publishes a two-year forecast of UI benefits, UI payroll tax receipts, and other key fiscal information related to the state ’s UI Trust Fund.
https://lao.ca.gov/LAOEconTax/Article/Detail/779

Updated Unemployment Insurance Fund Forecast Shows Structural Deficit [EconTax Blog]

Jul 7, 2023 - Employers pay regular UI payroll taxes into the fund. These payroll taxes are used to pay out benefits. In January and May each year, EDD publishes a two-year forecast of UI benefits, UI payroll tax receipts, and other key fiscal information related to the state ’s UI Trust Fund.
https://lao.ca.gov/LAOEconTax/article/Detail/779

Psilocybin legalization. [Ballot]

Jun 29, 2023 - Potential Impact on State and Local Tax Revenues. The measure could result in some increase in tax revenue, as people selling psilocybin or providing related services could begin doing so legally under state law and therefore pay sales and personal income taxes.
https://lao.ca.gov/BallotAnalysis/Initiative/2023-004

U.S. Retail Sales Update: May 2023 [EconTax Blog]

Jun 15, 2023 - U.S. retail sales have been roughly flat (0.2 percent decline) over the last 3 months and grown 1.6 percent over the last 12 months.
https://lao.ca.gov/LAOEconTax/Article/Detail/778