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Budget and Policy Post

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The 2025-26 Budget: Estimated State Savings From Proposition 47

February 26, 2025 - In this post, we assess the administration’s estimate of the level of spending required by Proposition 47 (2014), which reduced punishment for various crimes and requires the resulting state savings be spent on certain grant programs. In particular, we focus on the administration’s estimate of the effects of Proposition 36 (2024)—which reversed parts of Proposition 47—on the level of required state spending under Proposition 47.


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The 2025-26 Budget: Transitional Kindergarten Multilingual Learner Screeners

February 26, 2025 - In this post, we provide background on the state’s English learner identification process, describe and assess the Governor’s proposal to provide $10 million for a multilingual learner screener in transitional kindergarten, and provide our recommendations to the Legislature.


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The 2025-26 Budget: Business, Consumer Services and Housing Agency Reorganization

February 25, 2025 - In this post, we provide background on state agencies in California government in general; the Business, Consumer Services, and Housing (BCSH) Agency, in particular; and the process for reorganizing state government. Next, we describe our understanding, based on discussions with the administration and available information at this time, of the Governor’s intent to reorganize BCSH. We conclude by providing key considerations for the Legislature when evaluating the Governor’s proposal when it is received in the Spring.


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The 2025-26 Budget: EDDNext

February 25, 2025 - The post assesses the adminstration's 2025-26 proposal for the fourth year of information technology (IT) modernization at the Employment Development Department (EDD). The portfolio, known as EDDNext, is now entering a critical phase, when aging IT systems that manage worker claims for Disability Insurance, Paid Family Leave, and Unemployment Insurance are to be replaced with new, integrated IT systems. Given this critical phase, as well as recent unscheduled changes and fund shifts within the EDDNext portfolio, we recommend the Legislature include stronger oversight tools going forward. These include: (1) remove extended encumbrance and expenditure deadlines; (2) add a notification period for the Joint Legislative Budget Committee to review final project documentation for the proposed Integrated Case Management System / Integrated Data Management IT project; (3) require the California Department of Technology to publish oversight reports every other month; and, (4) require EDD to provide quarterly legislative meetings.


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The 2025-26 Budget: Undertaking Fiscal Oversight

February 24, 2025 - This post provides guidance to the Legislature for conducting fiscal oversight. As outlined in our November Fiscal Outlook, we advise the Legislature to use the 2025-26 budget process to conduct robust fiscal oversight of state programs. In particular, we advise the Legislature to put particular focus on programs and activities supported by the General Fund to help prepare for actions that might be needed to address expected deficits in the coming years.


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The 2025-26 Budget: Office of Emergency Services—Request for Reappropriation of Law Enforcement Mutual Aid Fund Resources

February 24, 2025 - In this post, we provide an assessment of the administration’s request to effectively extend the pilot phase of the Office of Emergency Service’s Law Enforcement Mutual Aid Assistance Fund.


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The 2025-26 Budget: Overview of the Federal CalWORKs Pilot

February 21, 2025 - In this post, we provide background on the California Work Opportunity and Responsibility to Kids program, information on the federal Temporary Assistance for Needy Families pilot and California’s pilot application, and comments and questions for the Legislature to consider surrounding the implementation of the pilot.

(03/20/25) Update on Federal Pilot. In March 2025, the federal government notified the five previously selected pilot states—California, Maine, Kentucky, Minnesota, and Ohio—that these states were deselected from the pilot project. The federal Administration for Children and Families (ACF) indicated it plans to take a new approach to the pilot program and will issue a new request for proposals from states. The previously selected pilot states will not be subject to work participation rate requirements for federal fiscal year 2025. More information is available on the ACF website.


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The 2025-26 Budget: California Military Department—STARBASE Classroom Building

February 20, 2025 - This post provides our assessment of a California Military Department proposal to spend $419,000 in 2025-26 (and $5.5 million in subsequent years) to construct a STARBASE classroom building at Los Alamitos Joint Forces Training Base.


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The 2025-26 Budget: State Departments’ Operational Efficiencies (Control Sections 4.05 and 4.12)

February 19, 2025 - In this post, we discuss the savings to state departments assumed in the Governor's proposed 2025-26 budget resulting from the administrative exercises to seek operational efficiencies under Control Section 4.05 and Control Section 4.12.


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The 2025-26 Budget: Food Assistance Programs

February 19, 2025 - In this post, we provide background on the state’s major food assistance programs, CalFresh and the California Food Assistance Program; provide updates on caseload trends; and analyze the Governor’s proposed food assistance budget. Under the Governor’s budget, there are no major newly proposed augmentations or solutions.


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The 2025-26 Budget: Update on Implementation of New Firearm and Ammunition Tax

February 19, 2025 - In this post, we provide an update and comments on the implementation of a new firearm and ammunition tax that went into effect beginning July 2024.


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The 2025-26 Budget: CalWORKs

February 19, 2025 - In this post, we provide some basic background on the California Work Opportunity and Responsibility to Kids (CalWORKs) program followed by an overview and assessment of the Governor’s CalWORKs budget proposals.


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The 2025-26 Budget: CDTFA’s Tobacco Programs

February 14, 2025 - In this post, we provide information to support the Legislature’s oversight of the Department of Tax and Fee Administration’s (CDTFA’s) tobacco programs. In particular, we offer background information; comments on revenue trends, CDTFA’s enforcement activities, and the AB 3218 budget change proposal (BCP); and questions that budget subcommittees may wish to ask about these issues.


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The 2025-26 Budget: Supplemental Security Income/State Supplementary Payment (SSI/SSP) Program

February 13, 2025 - In this post, we provide some background on the Supplemental Security Income/State Supplementary Payment (SSI/SSP) Program, followed by an overview of the Governor's 2025-26 budget proposals and assumptions for SSI/SSP. The post also provides comparisons between SSI/SSP grant levels and the increasing cost of living in the state.


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The 2025-26 Budget: Child Welfare

February 13, 2025 - This post provides an overview of the Governor’s proposed 2025-26 budget for child welfare and foster care programs under the Department of Social Services, and raises questions and issues for the Legislature to consider.