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

Despite Fiscal Forecasting Uncertainties, Multiyear Budget Planning Essential

May 27, 2021 - This manifests in operating deficits that persist through the outlook horizon (2024‑25). Adopting a budget with this combination of assumptions is inadvisable in our view. One reason is that—given the state’s balanced-budget requirement—doing so requires assuming that the multiyear budget projections are wrong.
https://lao.ca.gov/Publications/Report/4443

Despite Fiscal Forecasting Uncertainties, Multiyear Budget Planning Essential [Publication Details]

May 27, 2021 - This manifests in operating deficits that persist through the outlook horizon (2024‑25). Adopting a budget with this combination of assumptions is inadvisable in our view. One reason is that—given the state’s balanced-budget requirement—doing so requires assuming that the multiyear budget projections are wrong.
https://lao.ca.gov/Publications/Detail/4443

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

The 2021-22 Budget: Multiyear Budget Outlook

May 23, 2021 - The 2021-22 Budget: Multiyear Budget Outlook The 2021-22 Budget Multiyear Budget Outlook 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.
https://lao.ca.gov/Publications/Report/4437

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

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

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