Staff
Chas Alamo
(916) 319-8357
Personal Income Tax, Employment, and Labor Law
Ann Hollingshead
(916) 319-8305
State Budget and Federal Funding
Nick Schroeder
(916) 319-8314
Public Employment, CalPERS, Elections, Veterans Affairs
Paul Steenhausen
(916) 319-8303
Local Government, Housing, and Homelessness
Brian Uhler
(916) 319-8328
Deputy Legislative Analyst: Economy, Taxes, and Labor
Alex Bentz
(916) 319-8312
Property Taxes, Bonds, and the Economy
Rowan Isaaks
(916) 319-8362
Corporation Tax and Economic Development
Seth Kerstein
(916) 319-8365
Sales and Excise Taxes and Demographics


Publications

Economy and Taxes

To browse all LAO publications, visit our Publications page.



Report

California's Economic and Demographic Environment

February 1, 1991 - California's Economic and Demographic Environment


Report

Revenue Options for the 1990-91 Budget

June 6, 1990 - This document provides a review of 14 revenue options that could be put into effect for the 1990-91 fiscal year. It was prepared at the request of the Senate Budget and Fiscal Review Committee, in order to assist the Committee's review of its fiscal choices for the 1990-91 Budget.


Report

The 1990-91 Budget: Perspectives and Issues

February 1, 1990 - (360 pages, 16MB) The 1990-91 Governor's Budget reflects two main constraints: first, the state's economy is expected to grow at a moderate pace, limiting the resources available to fund state spending requirements, and second, past state policy dictates the allocation of available resources. The administration’s budget offers as a starting point a set of policy choices that only partially accepts these dual constraints. While the budget recognizes the need to restrain state expenditure growth to the level of available resources, it proposes changes in existing policies as to how those resources are 'allocated. In part, this reflects the administration's preferences as to how the state's money should be spent. Over the next four months, the Legislature and the administration will attempt to reconcile their preferences in developing a state budget for 1990-91. However, changes in the economy and in the state's past policy choices also may influence the budget that is ultimately signed into law. Here we review the state's fiscal condition, the major areas where de-mand for state services is outstripping its ability to provide them, and the extent to which the state's existing revenue base is capable of supporting the delivery of existing and additional state services. Finally, we provide a brief examination of the strategies proposed in the Governor's Budget for resolving the state's fiscal dilemma.


Report

The 1989-90 Budget: Perspectives and Issues

February 22, 1989 - In beginning its work on the state budget for 1989-90, the Legislature faces the most adverse set of fiscal circumstances it has faced since the recession of 1981-82. The state’s budget reserve has been completely depleted, and a deficit in the current-year's budget appears likely. At current levels of service, expenditure requirements for 1989-90 will exceed projected revenue growth by at least $500 million, and the full restoration of the state's reserve fund would require another $1.1 billion. This fiscal situation has come about despite the continued strength of the California economy. The state government faces a number of challenges. Here, we review the challenges facing the Legislature and the state; review the state's fiscal condition, the major areas where demand for state ser-vices is outstripping its ability to provide them, and the extent to which the state's exist-ing revenue base is capable of supporting the delivery of existing and additional state services; and provide an examination of the strategies proposed.


Report

Accommodating California's Growth

February 1, 1989 - Accommodating California's Growth


Report

How Reliable Is the Economic Forecast?

February 1, 1989 - How Reliable Is the Economic Forecast?


Report

Report on the 1988-89 Tax Expenditure Budget: Overview and Selected Reviews

December 1, 1988 - The purpose of this report is to provide information which will assist the Legislature in reviewing the state's tax expenditure budget, including making decisions regarding which individual TEPs should be retained, renewed, modified, or eliminated.


Report

A Perspective on the California Economy

December 1, 1988 - The purpose of this report is to provide the Legislature with an overview of the California economy, including information that will assist it in making decisions that will affect the economy's future health and thus the quality of life in California.


Report

The 1988-89 Budget: Perspectives and Issues

February 1, 1988 - (227 pages, 7.5 MB) The Governor's Budget for 1988-89 anticipates continued moderate growth in the California economy, and projects that revenue collections will be sufficient to fund normal workload increases and statutory requirements, as well as provide funds to address certain other state priorities. As in recent years, the proposed revenues and expenditures would leave the state with an unrestricted reserve of about $1 billion. The budget indicates that the projected level of state revenues will place the state $24 million below its appropriations limit for 1988-89. Here, we provide an overview of the condition of the General Fund in the current and budget years. We also discuss reasons for changes in the state's fiscal outlook since the last Governor's Budget and presents some highlights of the 1988-89 budget.


Report

The Impact of Demographic Changes on California

February 1, 1988 - The Impact of Demographic Changes on California


Report

Analysis of the 1987-88 Tax Expenditure Budget

January 1, 1988 - The objective of this report is to provide the Legislature with information which will enable it to subject tax expenditure programs to the same ongoing scrutiny that direct expenditure programs receive, thereby facilitating the development of proposals to renew, modify, or delete individual tax expenditure programs in conjunction with the regular budget process.


Handout

Administering the Sales and Use Tax

December 1, 1987 - In this report, we describe the perceived problems that led to the enactment of Chapter 1728, and attempt to assess the underlying causes of those problems. Second, we examine whether it would be feasible to exempt new products from taxation, and whether such an exemption would improve the current administration of the sales and use tax. Finally, we analyze the feasibility and costeffectiveness of collecting information concerning specific taxpayer transactions, and the best means of protecting the confidentiality of such information.


Report

The 1987-88 Budget: Perspectives and Issues

February 1, 1987 - (280 Pages, 13MB) The Governor's Budget for 1987-88 reflects an anticipated temporary slowdown in the California economy. Projected revenues will not be sufficient to both fund the current level of services and restore the reserve to a $1 billion level. Faced with this choice, the budget gives its highest priority to the restoration of the reserve. Even though state revenues are projected to decline in "real" terms, the state's constitutional limit on appropriations could further restrain the state's ability to maintain the level of services provided to its citizens. Here, we provide a brief overview of the state's fiscal condition in 1986 and 1987, discuss the state's budget prospects beyond the upcoming year, and examine revenues and expenditures in detail.


Report

Conformity to the Federal Tax Reform Act

February 1, 1987 - Conformity to the Federal Tax Reform Act


Report

The 1986-87 Budget: Perspectives and Issues

February 1, 1986 - (235 pages, 10.5 MB) Reflecting both the continuing expansion of the California economy as well as the need to provide for less-certain times, the Governor's Budget for 1986-87 provides for expansions in state services and employees to provide those services, and restores the state's "rainy day" fund. While the level of General Fund revenues is 4.1 percent higher than the level estimated for the current year, the level of General Fund expenditures proposed in the budget is only 1.1 percent higher than the level estimated for the current year. This is because (1) a substantial portion of the projected revenue growth must be used simply to fund current expenditures, and (2) the budget proposes to increase the balance in the state's reserve fund. Even without these checks on expenditure growth, however, the state's ability to expend funds at a rate comparable to the growth in revenues would be limited in 1986-87 by the state's constitutional limitation on appropriations. Here, we discuss the state's fiscal condition in 1985 and 1986, explain the state's budgetary prospects beyond the upcoming year, and provide a more detailed examination of revenues and expenditures.