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

May 17, 2021 - On May 14, 2021, Governor Newsom presented a revised state budget proposal to the Legislature. (This annual proposed revised budget is called the “May Revision.”) In this post, 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.
https://lao.ca.gov/Publications/Report/4432/8

State Funding Actions Related to COVID-19

Apr 20, 2020 - State Funding Actions Related to COVID-19 COVID-19 State Funding Actions Related to COVID-19 This post summarizes recent legislative and administrative action to allocate state funds to respond to the coronavirus disease 2019 (COVID-19) public health emergency.
https://lao.ca.gov/Publications/Report/4223

Taking Stock of California’s Recession Readiness

Feb 12, 2020 - Whether the state ’s multiyear fiscal outlook shows operating surpluses or deficits when a recession begins can have a significant effect on how resilient it is through the downturn. If the state enters the recession with an operating deficit, the decline in revenues caused by the recession will only worsen the state ’s budget problem.
https://lao.ca.gov/Publications/Report/4156

The 2021-22 Budget: Multiyear Budget Outlook [Publication Details]

May 23, 2021 - This report presents our office’s independent assessment of the condition of the state General Fund budget through 2024-25 assuming the economy continues to grow. While the state faces a historic surplus, a spending level beyond what is proposed by the Governor would require the Legislature to identify proposals to reject.
https://lao.ca.gov/Publications/Detail/4437

COVID-19 and California’s Evolving Fiscal Outlook

Mar 18, 2020 - Earlier this week the Legislature provided the administration additional resources and authority to ensure the state can effectively respond. Similarly, there is a marshaling of resources occurring at the federal level that should offer support to the economy and the state ’s fiscal situation.
https://lao.ca.gov/Publications/Report/4203

The 2021-22 Budget: The Governor’s Suspension Proposal [Publication Details]

Jan 29, 2021 - Under current law, about $1.3 billion in state expenditures—including many that directly support core government services—are subject to potential suspension in 2021-22. Given that the state has a significant windfall, it is unlikely that these suspensions would be operative under current law. The Governor proposes maintaining the suspension calculation for 2022-23.
https://lao.ca.gov/Publications/Detail/4328

The 2021-22 Budget: California Spending Plan Series [Publication Details]

Aug 24, 2021 - Each year, our office publishes California Spending Plan, a series of publications that summarize the annual state budget. The Overview of the California Spending Plan is presented here along with short online posts that focus on major areas and features of the 2021-22 budget package. As more of these posts become available, we will add them below.
https://lao.ca.gov/Publications/Detail/4464

The 2020-21 Budget: California's Fiscal Outlook

Nov 20, 2019 - We find the state has: Ongoing Surplus of $3   Billion Under Baseline Expenditure Scenario. In our baseline expenditure scenario, we find the state has an ongoing surplus of around $ 3  b illion. Importantly, this scenario assumes the federal government approves the managed care organization (MCO) tax and the state faces no major disasters over the next few years.
https://lao.ca.gov/Publications/Report/4111

State Spending and Administrative Costs [Publication Details]

Sep 29, 2020 - State Spending and Administrative Costs [Publication Details] Translate Our Website This Google ™ translation feature provided on the Legislative Analyst's Office (LAO) website is for informational purposes only.
https://lao.ca.gov/Publications/Detail/4273

The Quiet Transformation in California’s Cash Management

Aug 29, 2019 - The way it works is the state borrows the funds necessary to pay for its operations early in the fiscal year, when its net cash flows are negative. Later in May or June, after the bulk of state personal income tax payments are remitted in April and net cash flows turn positive, the state repays the loan.
https://lao.ca.gov/Publications/Report/4091