November 16, 2022 - Our annual Fiscal Outlook publication gives our office’s independent assessment of the California state budget condition for the upcoming fiscal year and over the longer term. In this report, we anticipate the state will have a $24 billion budget problem to solve in the upcoming fiscal year and operating deficits declining from $17 billion to $8 billion over the multiyear period. The goal of this report is to help the Legislature begin crafting the 2023‑24 budget. Our analysis relies on specific assumptions about the future of the state economy, its revenues, and its expenditures. Consequently, our estimates are not definitive, but rather reflect our best guidance to the Legislature based on our professional assessments as of November 2022.
Update (11/22/22): The original version of this report identified a $25 billion—instead of a $24 billion—budget problem, which reflected an error in the way we accounted for student housing grant program funding.
March 30, 2022 - This brief estimates the condition of the budget over the multiyear taking state appropriations limit requirements into consideration.
January 13, 2022 - On January 10, 2022, Governor Newsom presented his proposed state budget to the Legislature. In this report, we provide a brief summary of the proposed budget based on our initial review. In the coming weeks, we will analyze the plan in more detail and release several additional budget analyses.
Update (1/21/22): Includes a corrected estimate of Governor’s Budget proposals that are excludable under the State Appropriations Limit (SAL).
September 6, 2024 - Each year, our office publishes the California Spending Plan to summarize the annual state budget. This publication provides an overview of the 2024‑25 Budget Act, gives a brief description of how the budget process unfolded, and then highlights major features of the budget approved by the Legislature and signed by the Governor. All figures in this publication reflect actions taken through early July 2024, but we have updated the narrative to reflect actions taken later in the legislative session.
October 16, 2023 - This publication provides a preliminary overview of the 2023-24 Budget Act, gives a brief description of how the budget process unfolded, and then highlights major features of the budget.
May 16, 2022 - On May 13, 2022, Governor Newsom presented a revised state budget proposal to the Legislature. (This annual proposed revised budget is called the “May Revision.”) In this brief, we provide a summary of the Governor's revised budget, focusing on the overall condition and structure of the state General Fund—the budget's main operating account. In the coming days, we will analyze the plan in more detail and provide additional comments in hearing testimony and online. The information presented in this brief is based on our best understanding of the administration's proposals as of 11:00 AM, May 14, 2022. In many areas of the budget, this understanding will continue to evolve as we receive more information. We only plan to update this brief for very significant changes (that is, those greater than $500 million).
Update (5/20/22): Updated to reflect information about state appropriations limit (SAL) excluded spending and other budget proposals.
May 24, 2022 - This brief presents our office’s independent assessment of the condition of the state General Fund budget through 2025-26 under our forecast of revenues and spending, assuming the Governor’s May Revision policies were adopted.
January 13, 2023 - On January 10, 2023, Governor Newsom presented his proposed state budget to the Legislature. In this report, we provide a brief summary of the proposed budget based on our initial review. In the coming weeks, we will analyze the plan in more detail and release several additional budget analyses.
February 7, 2023 - In this brief, we analyze the Governor’s budget proposals relating to the California State University. We cover proposals relating to core operations, enrollment, and capital outlay budget solutions.
September 30, 2022 - This post describes the legislative and administrative decisions regarding the State Appropriations Limit (SAL) in the 2022‑23 budget process.
April 26, 2022 - Given the persistent strength in state tax collections, it may come as a surprise that California’s General Fund likely faces a budget problem in the coming years. Yet this is the key takeaway from a recent fiscal analysis of 10,000 possible revenue scenarios conducted by our office. In 95 percent of our simulations, the state encountered a budget problem by 2025-26. Notably, the likelihood of a budget problem largely is impervious to the future trajectory of state tax revenues. That is, whether revenues trend upward or downward from here, the state likely faces budget deficits. The central implication of our findings is stark and suggests that in the interest of fiscal resilience, the Legislature should consider rejecting a substantial portion of the Governor’s January spending proposals.
February 22, 2023 -
This report describes the Governor’s proposed budget solutions within climate, resources, and environmental programs, and provides the Legislature with a framework and suggestions for how it might modify those proposals to better reflect its priorities and prepare to address a potentially larger budget problem.
Correction (4/27/23): The amounts in Figure 1 for Wildfire and Forest Resilience and Nature-Based Activities and Extreme Heat have been corrected.
January 31, 2023 - In this brief, we provide an overview and initial analysis of the Governor’s higher education budget plan.
February 15, 2023 - This brief provides our current assessment of the scale of the coming budget problems under the Governor’s budget proposals. We also provide our guidance to the Legislature about how to address these shortfalls given current economic conditions.
February 14, 2022 - Provides an update on some major recent state budget actions related to housing, describes the Governor’s housing budget proposals, and raises issues for the Legislature’s consideration.