To browse all LAO publications, visit our Publications page.
January 23, 2026 - In this installment of Fiscal Perspectives, the Legislative Analyst describes how the LAO’s revenue estimates represent a hedge against downside stock market risk and why—despite current cash trends—caution matters given the state’s large, ongoing structural deficit.
January 21, 2026 - Senate Budget and Fiscal Review
January 20, 2026 - Assembly Committee on Budget
January 12, 2026 - On January 9, 2026, Governor Newsom’s administration presented its proposed state budget to the California Legislature. In this report, we provide a high-level summary and our initial analysis of the Governor’s budget based on our preliminary review (as of January 10).
January 1, 2026 - As we release publications aimed at addressing the 2026-27 budget situation, we will add them to this index page.
November 19, 2025 - Each year, our office publishes the Fiscal Outlook in anticipation of the upcoming budget season. This report gives the Legislature our independent estimates and analysis of the state’s General Fund budget condition with the goal of helping lawmakers prepare for the 2026-27 budget process. As always, our Fiscal Outlook evaluates the budget’s condition based on current law and policy both at the state and federal level.
October 16, 2025 - Each year, our office publishes California Spending Plan, a series of publications that summarize the annual state budget. The flagship report of this series, Overview of the Spending Plan, is presented here along with short online posts that focus on major areas and features of the 2025-26 budget package. As the posts become available, we will add them below.
October 16, 2025 - Each year, our office publishes the California Spending Plan to summarize the annual state budget. In this publication we: provide an overview of the 2025-26 budget package, give a brief description of how the budget process unfolded, and then highlight the major features of the budget approved by the Legislature and signed by the Governor.
October 6, 2025 - The Supplemental Report of the 2025-26 Budget Act contains statements of legislative intent and requests for studies that were adopted by the Legislature during deliberations on the 2025-26 budget package.
August 20, 2025 - Assembly Budget Subcommittee No. 7 on Accountability and Oversight
May 24, 2025 - This post presents our office’s forecast of the condition of the state General Fund budget through 2028-29 under our revenue estimates and assuming the Governor’s May Revision policies were adopted. (Our earlier analysis, The 2025-26 Budget: Initial Comments on the Governor’s May Revision, differed in two ways: [1] it provided our assessment of the budget condition in the near term only, and [2] it was predicated on the administration’s revenue and spending estimates.)
May 17, 2025 - On May 14, 2025, Governor Newsom presented a revised state budget proposal to the Legislature. This annual proposed revised budget is referred to as the May Revision. In this brief, we provide a summary of and comments on the Governor’s revised budget, focusing on Governor’s proposals for and the overall condition of the state General Fund—the budget’s main operating account.
May 7, 2025 - Assembly Budget Subcommittee No. 7 on Accountability and Oversight
May 7, 2025 - Assembly Budget Subcommittee No. 7 on Accountability and Oversight
April 10, 2025 - Reserves allow the state to ensure stable funding for its services over time, even when revenue fluctuates unpredictably. Over the last few years, the state has indeed experienced significant fluctuations—large surpluses followed by significant deficits. This volatility has prompted interest in changes to the state’s reserve policy. In this report, we assess proposed changes by the Governor to the state’s reserve policy and put forward our own recommendations that would allow the state to save enough in reserves to be able to afford its core service level over the long-term.