CA SB1160

Requires the Legislative Analyst to use dynamic economic analysis when estimating the statewide economic impact of proposed changes to state tax law that exceed $10 million in fiscal impact in any one year.

Requires the Department of Finance to use the same dynamic economic analysis methodology for fiscal estimates of proposed state tax law changes exceeding $10 million annually.

Dynamic analysis must account for probable behavioral responses of taxpayers, businesses, and other residents, and estimate the economic impact of resulting state spending reductions needed to maintain a balanced budget.

Both the Legislative Analyst and Department of Finance may decline to conduct dynamic analysis only if they determine and report findings to the Legislature that it is unreasonable to do so.