The 2026-27 Budget: Fiscal Outlook for Schools and Community Colleges

Nov 19, 2025 - Proposition 98 Reserve Reserve Withdrawal Required in 2026 ‑27. The Proposition  98 Reserve generally requires withdrawals when the guarantee is less than the previous year ’s guarantee, adjusted for inflation.
https://lao.ca.gov/Publications/Report/5093

The 2026-27 Budget: Fiscal Outlook for Schools and Community Colleges [Publication Details]

Nov 19, 2025 - This growth—combined with a required reserve withdrawal—would be just enough to fund a 2.51 percent statutory cost-of-living adjustment (COLA). The state could use the one-time funds to build budget resiliency, which seems especially important given the risks of a stock market downturn.
https://lao.ca.gov/Publications/Detail/5093

The 2023-24 Budget: Fiscal Outlook for Schools and Community Colleges

Nov 16, 2022 - If the guarantee were below our estimates in 2024 ‑25, for example, the increase in withdrawals that year would come at the expense of withdrawals the following year. On the upside, if the guarantee were to exceed our forecast because of higher General Fund revenues, the required withdrawals likely would decrease.
https://lao.ca.gov/Publications/Report/4648

The 2025-26 Budget: Overview of the Governor's Budget

Jan 13, 2025 - The Governor ’s budget maintains an already planned withdrawal from the state ’s rainy day fund, which we think is a reasonable choice. Since 2023 ‑24, the Legislature has addressed a cumulative total of $82  billion in budget problems, but even including the withdrawal for 2025 ‑26, has only used about half of the Budget Stabilization Account (BSA).
https://lao.ca.gov/Publications/Report/4951

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

May 17, 2021 - Figure 7 Governor Still Uses Budget Solutions Despite Historic Revenue Growth Budget Solutions From 2020 Maintained in 2021 May Revision (In Billions) Reserve Withdrawals Make Budget Stabilization Account withdrawal $7.8 Make Safety Net Reserve withdrawal 0.5
https://lao.ca.gov/Publications/Report/4432

The 2025‑26 Budget: Fiscal Outlook for Schools and Community Colleges

Nov 20, 2024 - It also requires the state to withdraw funding from the reserve when the guarantee is growing more slowly than inflation. When the state’s overall fiscal condition is relatively weak, the Legislature can suspend or reduce required deposits or make additional discretionary withdrawals.
https://lao.ca.gov/Publications/Report/4940

The 2023-24 Budget: Proposition 98 Overview and K-12 Spending Plan

Feb 7, 2023 - One  difference between these accounts is that the state might be required to make withdrawals from the Proposition  98 Reserve if revenues were to decline significantly, whereas the rules governing the BSA do not require automatic withdrawals.
https://lao.ca.gov/Publications/Report/4670

Update on State and School District Reserves

Apr 5, 2020 - (In this case, resources include both revenues as well as withdrawals from reserves.) In effect, this means the estimated balance of the SFEU —at the time of the budget ’s passage —cannot be lower than zero.
https://lao.ca.gov/Publications/Report/4216

The 2023-24 Budget: Overview of the Governor's Budget

Jan 13, 2023 - The state has many types of solutions —or tools —for addressing a budget problem, but the most important include: reserve withdrawals, spending reductions, revenue increases, and cost shifts (for example, between funds).
https://lao.ca.gov/Publications/Report/4662

The 2020-21 Budget: The Fiscal Outlook for Schools and Community Colleges

Nov 20, 2019 - Withdrawals Required When Guarantee Is Growing Relatively Slowly. Proposition 2 r equires the state to withdraw funds from the Proposition 98 Reserve if the minimum guarantee is not growing quickly enough to support the prior ‑year funding level, as adjusted for student attendance and inflation. 2018‑19 and 2019‑20 Updates Higher Revenues Across 2018 ‑19 and 2019 ‑20.
https://lao.ca.gov/Publications/Report/4113