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The 2020-21 Budget: Overview of the Governor's Budget
January 13, 2020 - This report presents our office’s initial assessment of the Governor’s budget. We estimate the Governor had a $6 billion surplus to allocate to discretionary purposes in 2020-21. The Governor allocates most of the surplus toward one-time purposes, including maintaining a positive year-end balance in the state’s discretionary reserve. Under the administration’s estimates, total reserves would reach $20.5 billion at the end of 2020-21—this represents a $1.7 billion increase from the 2019-20 enacted level. California continues to enjoy a healthy fiscal situation. Despite its positive near-term picture, the budget’s multiyear outlook is subject to considerable uncertainty. In addition to describing the condition of the budget under the Governor’s proposal, this report discusses tools the Legislature can use to mitigate against these heightened risks.
January 20, 2020: Upon further review, one item included in the original version of Appendix Figure 3 on discretionary on health spending should not have been included (specfically, use of the Medi-Cal drug rebate fund to offset General Fund costs). Removing this item—which reduces General Fund spending—from the list of discretionary choices made in the Governor’s budget increases our calculation of the surplus to $6 billion. The document is updated to reflect these changes.
Update 1/24/20: Adjusted Judicial Branch items in Appendix Figure 1 to reflect ongoing spending.
Preparing for Rising Seas: How the State Can Help Support Local Coastal Adaptation Efforts
December 10, 2019 - This report responds to increasing legislative interest in determining how the state can best prepare for the impacts of climate change, including sea‑level rise (SLR).
Also see this 
Summary Fact Sheet for the report
Allocating Utility Wildfire Costs: Options and Issues for Consideration
June 21, 2019 - Recent catastrophic wildfires caused by utilities in California have caused tens of billions of dollars in property damage. Under current legal standards, these damages will directly lead to increased costs for utilities, which could be passed on to ratepayers. Moreover, the recognition of increased potential costs associated with wildfire risks has affected the credit markets, contributing to one investor owned utility (Pacific Gas and Electric) declaring bankruptcy, as well as credit downgrades for other utilities. These credit effects will make it more difficult and expensive for utilities to secure financing for capital investments, which will also increase costs for ratepayers, as well as potentially affect other policy goals. The goal of this report is to be a resource for policymakers and the public seeking to better understand the complicated issues surrounding utilities and the costs associated with wildfire risks.
The 2019-20 Budget: Natural Resources and Environmental Protection
February 14, 2019 - In this report, we assess several of the Governor’s budget proposals in the natural resources and environmental protection areas. Based on our review, we recommend various changes, as well as additional legislative oversight. We provide a complete listing of our recommendations at the end of this report.
The 2019-20 Budget: Overview of the Governor's Budget
January 14, 2019 - This report presents our office’s initial assessment of the Governor’s Budget. The budget’s position continues to be positive. With $20.6 billion in discretionary resources available, the Governor’s budget proposal reflects a budget situation that is even better than the one our office estimated in the November Fiscal Outlook. The Governor’s Budget allocates nearly half of these discretionary resources to repaying state liabilities. Then, the Governor allocates $5.1 billion to one-time programmatic spending, $3 billion to reserves, and $2.7 billion to ongoing spending. Although the Governor’s allocation to discretionary reserves represents a smaller share of resources than recent budgets, the Governor’s decision to use a significant share of resources to pay down state debts is prudent. The Governor’s ongoing spending proposal is roughly in line with our November estimate of the ongoing capacity of the budget under an economic growth scenario. This was just one scenario, however. Recent financial market volatility indicates revenues could be somewhat lower than either we or the administration estimated.
Assessing California’s Climate Policies—Transportation
December 21, 2018 - Chapter 135 of 2017 (AB 398, E. Garcia) requires our office to annually report on the economic impacts and benefits of California’s statutory greenhouse gas (GHG) emission goals—statewide emissions to 1990 levels by 2020 and to 40 percent below 1990 levels by 2030. This report provides our assessment of the effects, of major policies in the transportation sector intended to help meet these goals, as well as identifies some key issues for the Legislature to consider as it makes future policy and budget decisions. In a companion report, Assessing California’s Climate Policies—An Overview, we describe the general types of economic effects of state climate policies, key challenges in measuring these effects, and broad issues for the Legislature to consider when designing and evaluating its climate policies.
Assessing California’s Climate Policies—An Overview
December 21, 2018 - Chapter 135 of 2017 (AB 398, E. Garcia) requires our office to annually report on the economic impacts and benefits of California’s statutory greenhouse gas (GHG) emission goals—statewide emissions to 1990 levels by 2020 and to 40 percent below 1990 levels by 2030. This report provides a conceptual overview of the potential economic effects of policies intended to help meet these goals—both positive and negative—as well as identifies some key issues for the Legislature to consider when designing and evaluating state climate policies. In a companion report, Assessing California’s Climate Policies—Transportation, we provide more detailed information and comments on the state’s major policies aimed at reducing emissions from the transportation sector.
Cal Facts 2018
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December 6, 2018 - With a state as big, as populous, and as complex as California, quickly summarizing how its economy or state budget works is impossible. Instead, Cal Facts is a visual guide—using a variety of different charts—to the state's economy, revenues, and major program trends.
The Salton Sea: A Status Update
August 29, 2018 - The Salton Sea is California’s largest inland lake, located in Riverside and Imperial Counties. In this report, we discuss the changing conditions in and around the Sea, their statewide importance, and the Legislature’s role in overseeing projects to reduce potential negative effects on public health and wildlife.
Improving California's Forest and Watershed Management
April 4, 2018 - This report consists of five sections. First, we review the importance of and benefits provided by California’s forests. Second, we provide information regarding how forests are managed in California, including ownership, state and federal policies and programs, and funding. Third, we review the current conditions of forests and watersheds across the state, including the concerning implications and recent consequences of those conditions, as well as the actions that would be needed to make improvements. Fourth, in the findings section, we highlight shortcomings in how the state manages its forests and watersheds. Fifth, we offer recommendations for actions the Legislature could take to improve forest and watershed management in California.
The 2018-19 Budget: Resources and Environmental Protection
February 14, 2018 - In this report, we assess many of the Governor’s budget proposals in the resources and environmental protection areas and recommend various changes. Below, we summarize our major findings and recommendations. We provide a complete listing of our recommendations at the end of this report.
Improving Outcomes for California Conservation Corpsmembers
February 9, 2018 - In this report, we (1) provide background material on the types of training and educational opportunities the CCC offers and how the CCC is funded, (2) discuss the CCC’s goals and objectives for improving its training and work program and the corpsmember outcomes it currently tracks (3) assess the lack of corpsmember outcome data and the feasibility of establishing meaningful corpsmember outcome measures and (4) recommend steps the Legislature could take to improve outcome measurements for corpsmembers and to improve the overall performance of the department.
Cap-and-Trade Extension: Issues for Legislative Oversight
December 12, 2017 - In this report, we (1) provide background information on cap‑and‑trade and the recent extension of the program to 2030, (2) identify key administrative implementation decisions that could affect program outcomes and the need for legislative oversight, (3) identify potential opportunities to increase the effectiveness of a new advisory committee created by AB 398, and (4) describe potential state cap‑and‑trade revenue scenarios through 2030.
Evaluating California's Pursuit of Zero Net Energy State Buildings
November 14, 2017 - In this report, we provide background information on ZNE buildings as well as the administration’s approach to meeting the executive order’s goals for state‑owned ZNE buildings. Then, we assess the administration’s approach to these buildings. Finally, we recommend that the Legislature adopt its own policies related to ZNE for state buildings and take steps to ensure that it has adequate information to evaluate future administration proposals for state‑owned ZNE buildings.