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Budget and Policy Post

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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.


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An Update on the Public Health Laboratory System After the Pandemic

June 12, 2025 - This post provides background on the role of the public health laboratory system and changes that occurred during and in response to the COVID-19 pandemic. We also provide a framework for the Legislature to use to assess the capacity of the laboratory system and whether any capacity gaps warrant further action.


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The 2025-26 Budget: State Mandates—Regional Water Quality Control Boards

May 30, 2025 - In this post, we discuss the Governor's May Revision budget proposal to retroactively suspend three municipal stormwater mandates.


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The 2025-26 Budget: May Revision Trailer Bill Proposals on the Delta Conveyance Project and Water Quality Control Plans

May 27, 2025 - This post describes and raises issues for legislative consideration about two proposed trailer bills related to (1) the Delta Conveyance Project and (2) water quality control plans.


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The 2025-26 Budget: Multiyear Budget Outlook

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.)


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The 2025-26 Budget: Cap-and-Trade Reauthorization and Greenhouse Gas Reduction Fund Proposals at May Revision

May 19, 2025 - Describes and comments on the Governor's May Revision proposals for reauthorizing the cap-and-trade program and spending Greenhouse Gas Reduction Fund revenues.


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The 2025-26 Budget: Concession Bargaining

May 19, 2025 - This is our analysis of the Governor’s May Revision proposal to (1) not fund scheduled pay increases to state employees established in ratified labor agreements and (2) authorize the Department of Finance (DOF) to impose reductions to employee compensation if collective bargaining agreements to achieve savings are not in place by July 1, 2025.