May 12, 2021 - In this analysis we examine what is known about the effects of the coronavirus disease 2019 pandemic on local governments’ fiscal condition.
October 10, 2017 - Presented to: Senate Human Services Committee and Assembly Human Services Committee.
January 2, 2013 - With a state as big, as populous, and as complex as California, it would be impossible to quickly summarize how its economy or state budget works. The purpose of Cal Facts is more modest. By providing various "snapshot" pieces of information, we hope to provide the reader with a broad overview of public finance and program trends in the state. Cal Facts consists of a series of charts and tables which address questions frequently asked of our office.
October 5, 2020 - Each year, our office publishes the California Spending Plan to summarize the annual state budget. This publication provides an overview of the 2020‑21 Budget Act, provides a short history of the notable events in the budget process, and then highlights major features of the budget approved by the Legislature and signed by the Governor. All figures in this publication reflect the administration’s estimates of actions taken through June 30, 2020, but we have updated the narrative to reflect actions taken later in the legislative session. In addition to this publication, we have released a series of issue‑specific posts providing more detail on various programmatic aspects of the budget.
August 11, 2011 - The 2011–12 state spending plan includes total budget expenditures of $120.1 billion from the General Fund and special funds. This consists of $85.9 billion from the General Fund and $34.1 billion from special funds. While General Fund spending has dropped by around 6 percent from 2010–11, this has, in part, been offset by increases in special fund spending as the state shifts some programs—from state to local responsibility under what has been called "realignment"—from General Fund support to special fund support. Federal funds spending continues to decline with the expiration of much of the funding made available through the American Recovery and Reinvestment Act.
November 20, 2013 - The 19th annual edition of the LAO's Fiscal Outlook--a forecast of California's state General Fund revenues and expenditures over the next six years--reflects continued improvement in the state's finances. A restrained budget for 2013-14, combined with our updated forecast of increased state revenues, has produced a promising budget situation for 2014-15. Our forecast indicates that, absent any changes to current laws and policies, the state would end 2014-15 with a multibillion-dollar reserve. Continued caution is needed, however, given that these surpluses are dependent on a number of assumptions that may not come to pass. For example, as we discuss in this report, an economic downturn within the next few years could quickly result in a return to operating deficits. In this report, we outline a strategic approach for allocating potential surpluses that prepares for the next economic downturn while paying for past commitments, maintaining existing programs, and making new budgetary commitments incrementally to address other public priorities.
April 5, 2020 - In recent weeks Congress has passed legislation that has directed funding to respond to the coronavirus emergency. This post discusses how some of the major pieces of funding could affect the state budget’s overall condition. In particular, we focus on how funding could help the state address some of the sources of a budget problem that could emerge as a result of the coronavirus emergency.
October 17, 2019 - Each year, our office publishes California Spending Plan, which summarizes the annual state budget. In July, we published a preliminary version of the report. This, the final version, provides an overview of the 2019‑20 Budget Act, then highlights major features of the budget approved by the Legislature and signed by the Governor. In addition to this publication, we have released a series of issue‑specific, online posts that give more detail on the major actions in the budget package.
Correction (10/29/19): Figure 4 total.
November 19, 2014 - The 20th annual edition of the LAO's Fiscal Outlook—a look at possible state revenue and spending trends over the next five years—reflects anticipated progress in building budget reserves under the recently approved Proposition 2. Specifically, absent new budget commitments, we estimate the state would end 2015-16 with $4.2 billion in total reserves, $2 billion of which would result from Proposition 2's new reserve rules. A $4 billion reserve would mark significant progress for the state, but maintaining such a reserve in 2015-16 would mean little or no new spending commitments outside of Proposition 98, the funding formula for schools and community colleges. Our higher General Fund revenue estimates translate to $6.4 billion available in 2015-16 for the state's Proposition 98 priorities. The report also discusses choices facing the state in implementing Proposition 2, such as choices about which budgetary and retirement debts to repay with dedicated Proposition 2 funds over the next 15 years.
October 2, 2018 - Each year, our office publishes the California Spending Plan to summarize the annual state budget. This publication discusses the 2018‑19 Budget Act and other major budget actions approved in 2018. This version reflects all budgetary legislation related to the 2018-19 Budget Act.
February 21, 2001 - We discuss several of the most significant spending proposals in the budget.
November 16, 2011 - We forecast that General Fund revenues and transfers in 2011-12 will be $3.7 billion below the level assumed in the June budget package. Such a shortfall could result in $2 billion of “trigger cuts” to various programs—including all of the “Tier 1” trigger cuts and three-fourths of the “Tier 2” cuts. (The Director of Finance will determine the actual amount of such cuts next month.) In 2011-12, we project that the state will have a $3 billion deficit, including the effects of these trigger cuts. In 2012-13, the state will face higher costs due to expiration of a number of temporary budget measures, an increase in Proposition 98 school costs under current law, the repayment of its Proposition 1A property tax loan, and other factors. We project a $10 billion operating shortfall (the difference between annual revenues and expenditures) in 2012-13. The $3 billion “carry-in” deficit from 2011-12 and the projected $10 billion operating shortfall mean that the Legislature and the Governor will need to address a $13 billion budget problem between now and the time that the state adopts a 2012-13 budget plan.
June 17, 2010 - Presented to The Conference Committee on the Budget
February 17, 2000 - Perspectives on the state's fiscal condition and the budget proposed by the Governor for 2000-01.