The 2021-22 Budget: Initial Comments on the Governor’s May Revision

May 17, 2021 - The funds will be transferred soon, but the state has until December 31, 2024 to use the funds. The U.S. Department of the Treasury recently released detailed guidance with more detail on how these funds can be used.
https://lao.ca.gov/Publications/Report/4432

A Framework for Allocating Federal Recovery Funds

May 4, 2021 - Importantly, we note that there is no requirement for the state to allocate all of its recovery funds as part of this year ’s budget process. Under the ARP, the state has until the end of 2024 to expend the funding, which gives the Legislature some time to define its vision for how to use a portion of the funds to address long-standing challenges.
https://lao.ca.gov/Publications/Report/4422

The 2021-22 Budget: The Governor’s Proposition 2 Proposals

Apr 26, 2021 - To help address the problem, last year ’s budget suspended the otherwise required deposit for 2020 ‑21 and made a $7.8  billion withdrawal from the BSA, lowering the total balance to $8.3  billion. The withdrawal was made pursuant to the Governor ’s disaster declaration in response to the coronavirus disease 2019 (COVID-19) public health emergency and proclamation of a budget emergency on June 25, 2020.
https://lao.ca.gov/Publications/Report/4418

The State Appropriations Limit [Publication Details]

Apr 21, 2021 - The State Appropriations Limit [Publication Details] HTML Description: This report: (1) describes how appropriations limits work for the state, school districts, and local governments in California; (2) explains why the limit is a constraint for state government; and (3) concludes with a variety of short- and long-term policy options—both of which we think the Legislature will need to take—in response to the issue.
https://lao.ca.gov/Publications/Detail/4416

The State Appropriations Limit

Apr 21, 2021 - Within a few years, there is a good chance of a substantial amount of negative room. Specifically, by 2024 ‑25, the state is more likely than not to have negative room in excess of $ 10  b illion. As a result, we anticipate the Legislature will need to make —potentially major —changes to the state budget in the coming years.
https://lao.ca.gov/Publications/Report/4416

Flexible Funding to California in the American Rescue Plan

Mar 23, 2021 - State and local governments have until December 31, 2024 to use the funds. Restrictions on Use of Funds. There are two restrictions on the use of the fiscal recovery funds. First, state and local governments are prohibited from using the funds to make supplemental pension payments.
https://lao.ca.gov/Publications/Report/4407

The 2021-22 Budget: The Governor’s Suspension Proposal

Jan 29, 2021 - Under its own revenue forecast, assuming the suspensions were operative, the administration estimates operating deficits would grow from $7. 6  b illion in 2022 ‑ 23 t o $11. 3  b illion in 2024 ‑25.
https://lao.ca.gov/Publications/Report/4328

The 2021-22 Budget: Overview of the Governor's Budget

Jan 10, 2021 - When the state created the requirement for supplemental payments, it had anticipated a steep drop in the minimum guarantee that would affect school and community college funding for several years. The supplemental payments were intended to accelerate the recovery from this drop, with payments growing from $2.3  billion in 2021 ‑22 to more than $6  billion by 2024 ‑25.
https://lao.ca.gov/Publications/Report/4309

The 2021-22 Budget: CalWORKs Fiscal Outlook

Dec 8, 2020 - We Project Further Increases in Out ‑Years. We project caseload to peak in 2022 ‑23, consistent with historic evidence suggesting caseload peaks roughly two years after peak unemployment. We further project caseload to remain above pre ‑pandemic levels through at least 2024 ‑25.
https://lao.ca.gov/Publications/Report/4306

With New Deficits Looming, California Will Weigh its Options for Allocating a Large Revenue Windfall

Dec 1, 2020 - Looking ahead, however, we also identify the emergence of a new ongoing deficit beginning in the budget year (2021‑22). This fiscal gap persists and widens through the remainder of our outlook period (2024‑25).
https://lao.ca.gov/Publications/Report/4305