Statement on Recent Legislative Analyst’s Office Report

SACRAMENTO, CA — In response to the Legislative Analyst’s Office’s (LAO) most recent report — Evaluating Tax Policy Changes in the Governor’s Budget — the California Budget & Policy Center (Budget Center), a nonpartisan research and analysis nonprofit, underscores the critical importance of ensuring fairness in our state’s tax system with the following statement from Executive Director Chris Hoene:

“State leaders possess both the tools and responsibility to protect existing services, address the budget shortfall, and address the vital long-term needs of Californians. The Legislative Analyst’s Office has put forth several viable options that would positively enhance California’s revenue picture. Given recent reports about lower-than-expected tax collections, it would be irresponsible for state leaders not to explore tenable revenue options.” 

Specifically, the Budget Center weighs in with agreement on the following recommendations from the LAO:

“These revenue options should be seriously considered by California leaders,” said Kayla Kitson, a senior policy analyst at the California Budget & Policy Center, in a recent thread on X. “They would help address the budget problem and also make the state’s tax system more fair,” said Kitson.

Despite the budget shortfall, California is home to great wealth. The LAO’s report makes it clear that policymakers have options to avoid cuts to essential services like healthcare, education, poverty reduction programs, climate resilience, and public transportation, which would only make life harder for Californians who are already struggling to get by. 

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The California Budget & Policy Center (Budget Center) is a nonpartisan research and analysis nonprofit advancing public policies that expand opportunities and promote well-being for all Californians.