This post was originally published on this site
Our office will publish shorter, more focused budget analyses over the next few months. In most cases, rather than sending out an announcement for each publication, we will provide periodic updates with the key takeaways from recent pieces. All of our 2022-23 budget analyses to date can be found here.
The 2022-23 Budget: Fuel Price and Other Fiscal Relief Options
- Californians Facing High Prices, Especially for Fuel. Prices for many types of goods across the state have increased notably over the past year—particularly fuel prices. In response, both the Governor and members of the Legislature have expressed interest in providing some form of fiscal relief to Californians.
- Governor Proposes $11 Billion Fiscal Relief Package. The Governor has put forward several proposals totaling roughly $11 billion that are intended to provide relief to Californians. The largest proposal ($9 billion) would provide tax refunds to registered vehicle owners in the state. The package also includes proposals to defer increasing fuel excise tax rates, lower diesel sales tax rates, and fund transit agencies to offer three months of free rides.
- Legislature Has Multiple Options to Consider, Based on Its Priorities. As the Legislature analyzes the merits of the relief options proposed by the Governor and considers its own approach, we suggest it design a relief package that (1) targets relief to the groups it wants to prioritize, (2) can be implemented quickly and efficiently, (3) aligns with its other policy and budget priorities, and (4) helps the state meet its state appropriations limit requirements.
The article above was released by the non-partisan Legislative Analyst’s Office.
