May 24, 2025

The 2025‑26 Budget

Multiyear Budget Outlook


Appendix Tables


Appendix Figure 1

LAO General Fund Multiyear Forecast, 2025‑26 May Revision

May 2025 LAO Outlook (In Millions)

2024‑25

2025‑26

2026‑27

2027‑28

2028‑29

Resources

Prior‑year balance

$41,966

$34,226

$24,335

$10,390

‑$7,249

Revenues/transfers

220,641

209,933

217,958

229,449

241,634

Transfer to Budget Stabilization Account

71

Withdrawal from the Budget Stabilization Account

4,926

7,100

Total Resources

$267,462

$251,258

$242,294

$239,838

$234,385

Expenditures

Proposition 98

$85,209

$81,634

$85,179

$91,466

$96,131

Non‑Proposition 98

148,028

145,289

146,725

155,621

156,888

Total Expenditures

$233,237

$226,923

$231,904

$247,088

$253,019

Fund Balances

Reserve for Encumbrances

$18,001

$18,001

$18,001

$18,001

$18,001

Special Fund for Economic Uncertainties

16,225

6,335

‑7,611

‑25,250

‑36,635

Safety Net Reserve

Budget Stabilization Account (Mandatory Deposits)

16,529

9,440

9,440

9,440

9,440

Budget Stabilization Account (Total Deposits)

18,292

11,192

11,192

11,192

11,192

Public School System Stabilization Account

1,266

854

133

1,097

Operating surplus/deficit

‑9,890

‑13,946

‑17,639

‑11,385

Note: Totals may not add due to rounding.

Appendix Figure 2

Proposition 98 Multiyear

May 2025 LAO Outlook (Dollars in Millions)

2023‑24
PY

2024‑25
CY

2025‑26
BY

2026‑27
BY1

2027‑28
BY2

2028‑29
BY3

General Fund

67,952a

86,524

81,634

85,179

91,466

96,131

Local Property Tax

31,470

32,699

34,243

35,309

36,586

38,464

Total Proposition 98

$99,422

$119,223

$115,876

$120,488

$128,052

$134,595

Settle‑Up

‑1,315

Total Proposition 98 General Fund Appropriation

$67,952a

$85,209

$81,634

$85,179

$91,466

$96,131

Proposition 98 Change to Prior‑year

‑$5,235

$20,738

‑$3,346

$4,612

$7,564

$6,543

Percent Change to Prior‑year

‑5.05%

21.06%

‑2.81%

3.98%

6.28%

5.11%

Proposition 98 Operative Test

2

1

1

3

1

1

Maintenance Factor Balance

$8,002

$3,507

$3,751

$4,702

$3,417

$2,539

Settle‑Up Balance

1,315

1,315

1,315

1,315

1,315

Mandate Balance

785

785

n/a

n/a

n/a

n/a

Public School Stabilization Account Transfer

$,266

133

964

Public School Stabilization Account Withdrawal

‑8,413

‑412

‑854

Public School Stabilization Account Balance

1,266

854

133

1,097

aIncludes $938 million in Proposition 28 arts and music education funding.

PY = prior year; CY = current year; BY = budget year; and n/a = not applicable.

Appendix Figure 3

General Fund Multiyear Non‑Proposition 98 Expenditures by Agency,
2025‑26 May Revision

May 2025 LAO Outlook (In Millions)

2024‑25

2025‑26

2026‑27

2027‑28

2028‑29

Legislative, Executive

$7,600

$4,465

$3,377

$3,441

$2,822

Courts

3,248

3,340

3,547

3,682

3,844

Business, Consumer Services, and Housing

3,726

287

222

221

221

Transportation

248

162

32

32

32

Natural Resources

7,532

2,090

2,024

2,057

2,093

Environmental Protection

623

117

117

117

117

Health and Human Services

76,022

83,713

86,270

91,437

95,106

Corrections and Rehabilitation

13,945

12,969

12,890

12,790

12,720

Education

19,981

19,591

21,223

22,644

20,183

Labor and Workforce Development

1,108

946

1,028

1,081

1,137

Government Operations

3,464

3,547

3,220

3,213

2,932

General Government

4,231

7,481

6,478

8,346

8,894

Non‑Agency Departments

‑2,367

‑1,209

‑1,114

‑1,640

‑1,090

Tax Relief/Local Government

‑653

‑556

‑491

‑491

‑491

Statewide Expenditures

‑1,211

‑5,715

‑4,873

‑6,214

‑7,313

Capital Outlay

773

681

217

277

230

Debt Service

5,525

5,900

6,080

6,284

6,556

Total Non‑Proposition 98 Expenditures

$148,028

$145,289

$146,725

$155,621

$156,888

Note: Totals may not add due to rounding.