Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Tax Expenditure Review topic
No spam. Unsubscribe anytime.
Committee sends SB 13 49 to appropriations to study California’s largest tax expenditures
Summary
SB 13 49 would direct the Legislative Analyst's Office to analyze major tax expenditures and recommend reforms; the committee voted to pass the bill as amended to the Assembly Appropriations Committee after broad support from teachers, tax reform advocates and local agencies.
Sen. Gonzales presented SB 13 49 to direct the Legislative Analyst's Office (LAO) to review the state's largest tax expenditures, citing an estimate that California spends about $94 billion annually through more than 100 tax-expenditure programs. The author argued that many older credits lack standardized goals and metrics required of credits created since 2014.
Michelle Warshaw of the California Teachers Association, a cosponsor, urged support and linked the LAO review to the state’s structural budget deficit and potential education funding cuts. Danny Kando Kaiser (California Tax Reform Association) and other witnesses said prior analyses have led to repeal of ineffective tax breaks and argued for rigorous evaluation of billion‑dollar credits.
Committee member Carrillo moved the bill; after a roll-call vote the committee reported SB 13 49 as amended to the Assembly Appropriations Committee.
The committee also noted that tax expenditures enacted by simple majority require two‑thirds to repeal, increasing the political difficulty of rescinding credits without legislative consensus; supporters said that makes analytical review important for accountability.
SB 13 49 will proceed to appropriations for further fiscal review.
