This report analyzes the potential effects from recently adopted and currently proposed regulations having significant effects on the cost of new housing in California. Specifically, these regulations considered include proposals that would require all housing in California to be built while paying workers at prevailing wage levels along with Zero Net Energy requirements, increasing local requirements for affordable units, and offsets, VMT reduction, and other measures related to the state’s climate change policies.
In recent years, a number of studies (e.g., The White House, September 2016; Furman, November 2015; Shoag & Ganons, August 2016; Glaeser & Gyourko, January 2017) have identi ed the outcome of increasingly stringent land use regulation in limiting housing supply and thereby increasing housing costs particularly in coastal urban areas. Similarly, a number of studies have assessed the signi cance of these regulations speci cally on California’s soaring housing costs (e.g., California Department of Housing & Community Development, January 2017; Legislative Analysts’ Of ce, March 2015 & March 2017; McKinsey Global Institute, October 2016; Next10, March 2016).
Jan. 3, 2017
Executives have grown more optimistic about growth, in part anticipating that President-elect Donald Trump’s administration and Republican congressional majorities will bring regulatory rollbacks, corporate tax breaks and increased infrastructure spending.
While the most current complete tax data from the Franchise Tax Board is for 2013, the recently published zip code data enables some preliminary analysis for the 2014 receipts.
By region, 40.3% of PIT revenues came from the Bay Area. More importantly, 51.2% of the increased PIT revenues in 2014 came from this region, once again illustrating how much California is reliant on a single region not only for continued jobs and employment growth, but the continued health of the state’s fiscal situation. Los Angeles, with 30% of the population, was the next largest region, paying 27.5% of total PIT and a 25.5% share of the increased PIT receipts.
In the absence of state policies that promote more balanced and geographically dispersed jobs growth, California’s finances will likely continue to be reliant on the economic health of one region.
Jan. 7, 2016
Governor Edmund G. Brown Jr. today proposed a $122.6 billion General Fund budget plan for 2016-17 that makes significant increases in funding for education, health care and state infrastructure, while bolstering the state's Rainy Day Fund and paying down state debts and liabilities.