Long-term Capacity for Debt Payments Under Proposition 2

Dec 21, 2017 - True Up Provisions. Under Proposition  2 ’s “true up ” provisions, the state reevaluates the estimate of Proposition  2 requirements twice: once in each two subsequent budgets. Under these reevaluations, the rainy day fund deposit is revised up (down) if capital gains taxes were higher (lower) than the state ’s prior estimates.
https://lao.ca.gov/Publications/Report/3727

Evolution of the Balance of the Budget Stabilization Account

Nov 14, 2018 - For example, the $2  billion optional deposit made in 2016 ‑17 was used to fund estimated true-up deposits for 2015 ‑16 and 2016 ‑17. As Figure  1 shows, this means that $500  million of the initial $2  billion deposit is “constitutionally required ” (under the true-up provisions) and the remainder is optional.
https://lao.ca.gov/Publications/Report/3900

The 2024-25 Budget: Proposition 2 Debt Payment Proposals

Mar 20, 2024 - Supplemental Pensions Payments Employers May Contribute Any Amount of Money Above What Is Required. Pension boards determine —either according to actuarial standards or statutory requirements —how much money employers must contribute to the pension system each year to address any existing unfunded liabilities.
https://lao.ca.gov/Publications/Report/4887

The 2020-21 Budget: Proposition 2 Debt Payment Proposals

Mar 10, 2020 - Figure 5 shows how our recommendation could work. For example, suppose in some year CalSTRS experiences an annual return of 3  p ercent —which is lower than the assumed rate of 7  p ercent. To make up for this actuarial loss, the board would need to increase the state ’s rate by approximately 2  p ercent of pay, but under law could only raise the rate by 0. 5  p ercent of pay each year over four years.
https://lao.ca.gov/Publications/Report/4196

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

Apr 26, 2021 - Figure 1 True Up Provisions. Under Proposition  2 ’s “true up ” provisions, the state reevaluates the BSA estimate twice: once in each two subsequent budgets. Under these reevaluations, the state revises the BSA deposit up or down if capital gains taxes were higher or lower than the state ’s prior estimates.
https://lao.ca.gov/Publications/Report/4418

The 2025-26 Budget: California's Fiscal Outlook

Nov 20, 2024 - Instead, much of the bounce appears to be tied to special forms of pay for high ‑income workers, such as bonuses and stock  compensation. Booming Stock Market Driving Income Growth. The recent run ‑up in the stock market, which appears tied to optimism surrounding artificial intelligence, is a primary driver of the rapid growth in pay to high ‑income workers.
https://lao.ca.gov/Publications/Report/4939

The 2026-27 Budget: Overview of the Governor's Budget

Jan 12, 2026 - Ongoing, the Governor ’s spending ‑related solutions provide $5  billion in savings within a few years. Appendix 1 provides a list of the Governor ’s budget solutions. Generates $5.6 Billion School and Community College Settle‑Up Obligation in 2025‑26.
https://lao.ca.gov/Publications/Report/5101

The 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - In this publication we: provide an overview of the 2025 ‑26 budget package, give a brief description of how the budget process unfolded, and then highlight the major features of the budget approved by the Legislature and signed by the Governor.
https://lao.ca.gov/Publications/Report/5079

The 2018-19 Budget: Repaying the CalPERS Borrowing Plan

Apr 4, 2018 - (We discuss these uses in our December 21, 2017 b udget and policy post Long ‑Term Capacity for Debt Payments Under Proposition   2 .) Interest on Proposition 2 Debts. Some Proposition  2 debts carry no interest, such as settle up.
https://lao.ca.gov/Publications/Report/3797

The 2017-18 Budget: California Spending Plan

Oct 18, 2017 - Budget Package Signed by Governor. The Governor signed the 2017 ‑18 Budget Act and other budget ‑related bills between June  27, 2017 and September  28, 2017. These bills are detailed in Figure  5. The Governor did not veto any appropriations in the 2017 ‑18 Budget Act .
https://lao.ca.gov/Publications/Report/3694/2