State Budget

Examining state tax revenues and the volume of legal cigarette sales, it appears that the ban has caused cigarette use to decline. As Figure 1 illustrates, the decline in tax paid cigarette sales accelerated in 2023 following the implementation of the ban. Lost sales translate into lost tax revenues for ...

Consequently, the details released thus far indicate that legislators’ plan for balancing the 2024-25 budget will work on paper only. In practice, budget holes will likely persist for the current fiscal year and taxpayers should expect the budget drama to continue long after the official budget is passed on June ...

“You will be glad my lord, that I possess such an unsentimental view when I am managing your investments” – Ralph Nickelby in Nicholas Nickleby by Charles Dickens According to the California Children’s Law Center, in 2023 California housed and cared for as many as 60,000 children who, for a ...

California is in a deep budget deficit.  In the May Revised budget, Gov. Newsom’s makes real cuts and suggests some efficiency improvements but are they enough?  PRI senior fellow in business and economics Wayne Winegarden unpacks the governor’s plan.  The proposal still relies on too many budget gimmicks and fund ...

Giving credit where it is due, Gov. Newsom’s “May Revise” budget proposal recognizes the seriousness of the situation. He proposes real cuts, opposes tax increases, and suggests some efficiency improvements – which are all positive steps. Unfortunately, the proposal still relies on too many budget gimmicks and fund shifts. The Newsom plan also underestimates the severity of the current budget shortfall that must be addressed. Making matters worse, growing economic headwinds, including the tech industry laying off over 81,000 people and California’s subpar personal income growth, raises concerns that the ...