The 2022-23 Budget: Multiyear Budget Outlook

May 24, 2022 - Our office ’s expenditure estimates account for inflation when cost ‑of ‑living adjustments are required by law and in areas where the state typically provides these adjustments, for example, in employee compensation.
https://lao.ca.gov/Publications/Report/4602

The 2022-23 Budget: Initial Comments on the Governor's May Revision

May 16, 2022 - Specifically, SAL requirements can only be met with: Tax Reductions or Tax Refunds. The first way the Legislature can allocate revenues in order to comply with the SAL is to reduce proceeds of taxes, for example, by reducing tax rates, increasing tax credits, or returning funds to taxpayers through tax refunds.
https://lao.ca.gov/Publications/Report/4598

Strong Tax Collections Belie California's Challenging Fiscal Outlook [Publication Details]

Apr 26, 2022 - Strong Tax Collections Belie California's Challenging Fiscal Outlook [Publication Details] Strong Tax Collections Belie California's Challenging Fiscal Outlook Format: HTML Description: Given the persistent strength in state tax collections, it may come as a surprise that California’s General Fund likely faces a budget problem in the coming years.
https://lao.ca.gov/Publications/Detail/4590

Strong Tax Collections Belie California's Challenging Fiscal Outlook

Apr 26, 2022 - Having essentially reached the Proposition  4 (1979) state appropriations limit (SAL), each additional dollar of revenue must be allocated consistent with SAL requirements, generally making them unavailable to fund baseline expenditures.
https://lao.ca.gov/Publications/Report/4590

The 2022-23 Budget: State Appropriations Limit Implications

Mar 30, 2022 - Reduce Taxes on an Ongoing Basis. The first long ‑term alternative for the Legislature is to reduce taxes so that they no longer are growing faster than the limit. Under this alternative, tax revenues and associated spending could still grow, but they could not grow faster than the limit itself.
https://lao.ca.gov/Publications/Report/4583

The Definition of Qualified Capital Outlay for the State Appropriations Limit

Feb 18, 2022 - Appropriations subject to the limit are calculated by taking proceeds of taxes and reducing them by excluded spending. Statutory Definition of Qualified Capital Outlay. One important SAL exclusion is qualified capital outlay.
https://lao.ca.gov/Publications/Report/4547

The 2022-23 Budget: Initial Comments on the State Appropriations Limit Proposal

Feb 4, 2022 - The  Constitution also allows expenditures on emergencies to be excluded from appropriations subject to the limit. However, those expenditures must meet three specific conditions. The spending must be: (1)  related to an emergency declaration by the Governor, (2)  approved by a two ‑thirds vote of the Legislature, and (3)  dedicated to an account for expenditures relating to that emergency.
https://lao.ca.gov/Publications/Report/4515

The 2022-23 Budget: Overview of the Governor's Budget

Jan 13, 2022 - For the budget year, as the Legislature considers the Governor ’s budget proposals, those proposals that currently count as excludable expenditures —such as spending on capital outlay —for the most part can only be reallocated to other SAL ‑related purposes, such as tax reductions or an alternative excluded  expenditure.
https://lao.ca.gov/Publications/Report/4492

The 2022-23 Budget: Fiscal Outlook for Schools and Community Colleges [Publication Details]

Nov 17, 2021 - After accounting for various adjustments—backing out one‑time expenditures, funding a 5.35 percent cost‑of‑living adjustment, and making required reserve deposits—we estimate that $9.5 billion is available for new commitments.
https://lao.ca.gov/Publications/Detail/4473

The 2022-23 Budget: Medi-Cal Fiscal Outlook

Nov 17, 2021 - Assumed Expiration of the MCO Tax Reauthorization of the MCO Tax Would Generate Billions of Dollars in General Fund Savings Beginning in 2023 ‑24. The MCO tax generates annual General Fund savings in Medi ‑Cal of $1.5 billion or more for each year it is in effect.
https://lao.ca.gov/Publications/Report/4474