Tax expenditure reporting and fiscal crises: The case of California

This article considers the utility of tax expenditure reporting mechanisms now in place in the State of California. The modification or elimination of tax expenditure programs is one strategy available to states during times of fiscal crises. The existence of a well-developed tax expenditure reporting process may facilitate the use of this strategy, but other factors also are involved. The authors review the particular roles played by tax expenditure programs during past periods of fiscal crises in California, and discuss the implications of their findings for tax expenditure reporting mechanisms.