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Budget and Policy Post

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Cap-and-Invest: November 2025 Auction Update and 2026-27 Budget Context

December 9, 2025 - In this post, we discuss the November 2025 cap-and-invest program auction results, as well as potential implications for the 2026-27 budget.


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The 2025-26 California Spending Plan: Human Services

November 21, 2025 - The 2025-26 spending plan provides around $38 billion from the General Fund for human services programs across ten state departments, councils, and commissions.


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Sales Tax Exemption for Bunker Fuel

November 19, 2025 - Chapter 442 of 2023 (AB 543, Gipson) extended a longstanding sales tax exemption for certain purchases of bunker fuel, also known as maritime fuel. The law directs our office to submit an annual report containing data on three outcomes: the average monthly maritime fuel price at all domestic and international Pacific seaports, the average monthly maritime fuel price at California seaports, and maritime fuel deliveries at California seaports. This report fulfills that statutory requirement.


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The 2025-26 California Spending Plan: Higher Education

November 14, 2025 - This post summarizes the state’s 2025-26 spending package for higher education. It is part of our Spending Plan series. In this post, we provide an overview of the state’s higher education spending package, then cover spending for the California Community Colleges (CCC), California State University (CSU), University of California (UC), student financial aid, and California State Library. The EdBudget part of our website contains many tables providing more detail about the 2025-26 education budget.


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The 2025-26 California Spending Plan: Child Care and State Preschool

November 14, 2025 - This post summarizes Child Care and State Preschool spending in the 2025-26 budget package.


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The 2025-26 California Spending Plan: Proposition 98 and K-12 Education

November 10, 2025 - This post summarizes Proposition 98 funding and K-12 education spending in the 2025-26 budget package.


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The 2025-26 California Spending Plan: Judiciary and Criminal Justice

October 24, 2025 - The 2025-26 budget provides $17.3 billion from the General Fund for judicial and criminal justice programs, including support for program operations and capital outlay projects. This is a decrease of $569 million, or 3 percent, below the revised 2024-25 level.


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The 2025-26 California Spending Plan: Housing, Homelessness and Local Government

October 22, 2025 - The 2025-26 budget package contains a number of major actions in the area of agency reorganization, homelessness, housing, and other actions, which we describe in this post.


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The 2025-26 California Spending Plan: Other Provisions

October 16, 2025 - This post discusses features of the state's spending plan that were not covered elsewhere in the 2025-26 Spending Plan series.


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The 2025-26 California Spending Plan: Natural Resources and Environmental Protection

October 16, 2025 - This post begins by providing an overview of total spending for the departments overseen by the California Natural Resources Agency (CNRA) and California Environmental Protection Agency (CalEPA). Next, we discuss a number of cross-cutting issues that affect departments in both agencies, including Proposition 4, budget reductions, and spending from the Greenhouse Gas Reduction Fund (GGRF). We then discuss individual departments that had notable budget changes within each of the two agencies.


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The 2025-26 California Spending Plan: Transportation

October 16, 2025 - In this post, we summarize some of the most notable components of transportation program budgets in the 2025-26 spending plan.


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The 2025-26 California Spending Plan: Proposition 4

October 16, 2025 - This post describes the first year of implementation funding for Proposition 4 as authorized by the 2025-26 budget package. We begin with a high-level summary, then provide an overview of each of the major Proposition 4 categories.


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The 2025-26 California Spending Plan: Health

October 16, 2025 - This post summarizes spending on health programs in the 2025-26 spending plan.


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Local Sales Tax Rebates in 2023-24

September 16, 2025 - Some of California's local governments offer partial sales tax rebates to try to boost the amount of taxable sales within their borders. In 2023-24, these rebates totaled $140 million. In this post, we describe the distribution of rebate payments across cities and counties. We also examine some economic and demographic characteristics of rebate-paying jurisdictions.


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Annual Report on Tax Exemptions for Medicinal Cannabis

June 24, 2025 - Chapter 837 of 2019 (SB 34, Wiener) established new tax exemptions for donations of medicinal cannabis. The law directs our office to submit an annual report containing data on three outcomes related to the exemptions: the number of medicinal cannabis patients served, the amount of medicinal cannabis products donated, and the amount of tax revenue lost. This report fulfills that statutory requirement for 2023.