The 2026-27 Budget: How to Use One-Time Revenue Improvements

Feb 20, 2026 - At the same time, the state would continue to use $10  billion in reserves in 2025-26 under the administration ’s plan. In addition, recent budgets have relied on nearly $30  billion in borrowing to address deficits, and the Governor ’s budget proposes almost $6  billion in additional borrowing (see Figure  1).
https://lao.ca.gov/Publications/Report/5133

The 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - Borrowing ($10 Billion) The budget package primarily addresses the budget problem using borrowing —these solutions represent $10  billion or roughly two ‑thirds of the total solutions. We define “borrowing ” as budget actions that achieve savings in the present, but result in an obligation or higher cost for the state in a future year.
https://lao.ca.gov/Publications/Report/5079

The 2026-27 Budget: Overview of the Governor's Budget [Publication Details]

Jan 12, 2026 - On January 9, 2026, Governor Newsom’s administration presented its proposed state budget to the California Legislature. In this report, we provide a high-level summary and our initial analysis of the Governor’s budget based on our preliminary review (as of January 10). Assembly Budget Handout (PDF) Senate Budget and Fiscal Review Handout (PDF)
https://lao.ca.gov/Publications/Detail/5101

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

Jan 12, 2026 - In this report, we provide a high ‑level summary and our initial analysis of the Governor ’s budget based on our preliminary review (as of January 10). In the coming weeks, we will analyze the plan in more detail and release many additional issue ‑specific budget analyses.
https://lao.ca.gov/Publications/Report/5101

The 2025-26 Budget: Multiyear Budget Outlook

May 24, 2025 - Both our office and the Department of Finance (DOF) project operating deficits ranging from $10  billion to $20  billion over the multiyear period. These shortfalls represent future budget problems that would require additional budget-balancing decisions.
https://lao.ca.gov/Publications/Report/5052

The 2024-25 Budget: Overview of the Spending Plan

Sep 6, 2024 - Update (10/2/24): Figure 8 has been updated for final actions.
https://lao.ca.gov/Publications/Report/4922/3

The 2024-25 Budget: Overview of the Spending Plan

Sep 6, 2024 - Update (10/2/24): Figure 8 has been updated for final actions.
https://lao.ca.gov/Publications/Report/4922/2

The 2024-25 Budget: Overview of the Spending Plan

Sep 6, 2024 - Update (10/2/24): Figure 8 has been updated for final actions.
https://lao.ca.gov/Publications/Report/4922/1

The 2023-24 Budget: Multiyear Assessment

Feb 15, 2023 - Consequently, we recommend the L egislature hold off using reserves unless revenues decline by more than the $10  billion identified in this report. Revenue declines beyond $10  billion would reflect levels below historical averages and could impact the state ’s core spending level.
https://lao.ca.gov/Publications/Report/4687

Evolution of the Balance of the Budget Stabilization Account

Nov 14, 2018 - Under Proposition  2, the state must make deposits into the BSA until its balance reaches a threshold of 10  percent of General Fund taxes. Each year that General Fund tax revenues grow, this 10  percent threshold also grows.
https://lao.ca.gov/Publications/Report/3900