News/Blog

Firm Updates and Announcements

California Budget Historically Flush but Disagreements Delay Implementation

The California Senate and Assembly have agreed upon a two-party budget proposal, and they sent a bill (SB 154) down to the Governor on Monday June 13th. This budget is really just a placeholder to make sure that the legislature meets it is June 15 constitutional deadline and so that the state controller continues to pay lawmakers, while they hash out more specific details with Governor Newsom.

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Tom Sheehy Testifies in Support of Tax Deduction Reinstatement

On April 4, 2022, Tom Sheehy, testified before the California State Assembly’s Revenue and Taxation Committee in support of Assembly Bill 2065. The measure, authored by Assembly Member Blanca Rubio, will help California’s businesses to recover from COVID by reinstating the net operating loss (NOL) tax deduction for the 2020 and 2021 tax years.

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Beyond the Recall: California Regulations

California’s legislative session has just wrapped up and the Governor’s recall election is now behind us. With the failure of the recall of Governor Newsom now behind us, there is less political turbulence in Sacramento.

Democrats still hold supermajorities in both houses of the Legislature, making it much easier to pass highly progressive majority vote bills in the labor, environmental, and consumer protection areas.

And that means you need to have a solid strategy for navigating California’s political landscape.

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Unemployment Insurance Fund Debt Could Decimate Struggling Businesses

At the start of the pandemic, California’s unemployment insurance fund did its job, softening the blow of job losses suffered by millions of workers—but COVID completely wiped the fund out. In order to provide unemployment benefits after the UI fund was emptied, California borrowed over $21 billion from the federal government. Now, California is faced with a dilemma: pay back the debt or steeply raise taxes on employers.

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