The 2020-21 Budget: California's Fiscal Outlook

Nov 20, 2019 - Ongoing Surplus Drops Below $1   Billion in Alternative Expenditure Scenario. There are a number of risks to the baseline expenditure scenario —including , for example, that the federal government might not approve the MCO tax.
https://lao.ca.gov/Publications/Report/4111

The 2019-20 Budget: Overview of the California Spending Plan (Final Version)

Oct 17, 2019 - The spending plan reauthorizes the MCO tax —for three and one ‑half years —under a broadly similar structure as the previous tax. As with the previous MCO tax, the reauthorized tax is a tiered, per ‑member, per month tax on the Medi ‑Cal and commercial enrollment of MCOs.
https://lao.ca.gov/Publications/Report/4083

The 2019-20 Budget: California Spending Plan—Debt Liabilities

Oct 17, 2019 - Deferrals To address budgetary shortfalls, at various points, the state made adjustments to expenditure accounting to push costs into different fiscal years, providing a temporary budgetary benefit. Background on the Payroll Deferral .
https://lao.ca.gov/Publications/Report/4106

Managing California’s Cash

Sep 3, 2019 - In 1994, the Legislature helped state officials sell a series of RAWs to investors by agreeing in law to automatically reduce most categories of expenditures if cash flow projections showed that timely payment of RAWs was threatened.
https://lao.ca.gov/Publications/Report/4092

The Quiet Transformation in California’s Cash Management

Aug 29, 2019 - Corporations issue commercial paper to finance their receivables while many U.S. state and local governments —especially those with back-loaded revenue collections (such as California) —issue tax revenue anticipation notes.
https://lao.ca.gov/Publications/Report/4091

Amid Good Fiscal Times, Planning for the Future Is Crucial [Publication Details]

May 21, 2019 - Later, when the economy and tax receipts weaken, the state can draw upon its accumulated savings to fund a spending level above what revenues would otherwise support. Exercising spending restraint during good times promotes fiscal sustainability and dampens the need for austerity in subsequent recessions, thus, facilitating policy stability.
https://lao.ca.gov/Publications/Detail/4051

Amid Good Fiscal Times, Planning for the Future Is Crucial

May 21, 2019 - The outlook represents our best estimate of future expenditures but, inherently, we cannot account for unanticipated events, most of which introduce higher, rather than lower, costs. Finally, uncertainty is not confined to the expenditure side; revenues are also susceptible to missing the forecast.
https://lao.ca.gov/Publications/Report/4051

The 2019-20 May Revision: LAO Revenue Outlook

May 12, 2019 - All of our revenue estimates use the administration’s assumptions for the effects of conforming to certain federal tax law changes and expanding the Earned Income Tax Credit. Personal Income Tax (PIT) PIT Growth Remains Steady.
https://lao.ca.gov/Publications/Report/4037

The 2019-20 May Revision: Initial Comments on the Governor’s May Revision

May 12, 2019 - Expenditures Constitutionally Required Spending. The budget has two key constitutional spending formulas, which require the state to spend minimum amounts in certain areas. The first —required by Proposition  98 (1988) —is a formula for determining the minimum amount of state funding for schools and community colleges.
https://lao.ca.gov/Publications/Report/4039

The 2019-20 May Revision: Sales Tax Exemptions for Diapers and Menstrual Products

May 12, 2019 - The annual budget process gives the Legislature a natural opportunity to review and possibly modify conventional expenditures. Expiration dates provide similar opportunities for tax expenditures, helping the Legislature make the best use of its budgetary resources.
https://lao.ca.gov/Publications/Report/4040