Building Reserves to Prepare for a Recession

Mar 7, 2018 - These required deposits were to gradually increase from 1  p ercent of General Fund revenues in 2006 ‑ 07 t o 3  p ercent in 2008 ‑09 and every year thereafter. Proposition  58 allowed these deposits to be suspended by an executive order issued by the Governor.
https://lao.ca.gov/Publications/Report/3769

California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - The current discrepancy over the size of the state ’s budget deficit —$18  billion under the Legislative Analyst ’s Office estimate versus $3  billion in the Governor ’s budget —fits squarely within that pattern.
https://lao.ca.gov/Publications/Report/5104

Evolution of the Balance of the Budget Stabilization Account

Nov 14, 2018 - Proposition  58 required BSA deposits to increase from 1  percent of General Fund revenues in 2006 ‑07 to 3  percent in 2008 ‑09 and every year thereafter. Proposition  58 Required Deposits Until BSA Reached Certain Size.
https://lao.ca.gov/Publications/Report/3900

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - Figure 3 General Fund Condition Under Fiscal Outlook (In Millions)
https://lao.ca.gov/Publications/Report/5091

The 2024-25 Budget: Overview of the Governor's Budget

Jan 13, 2024 - Specifically, we suggest the Legislature: (1) plan for lower revenues, (2) maintain a similar reserve withdrawal, (3) develop a plan for school and community college funding, (4) maximize reductions in one ‑time spending, and (5) apply a higher bar for any discretionary proposals and contain ongoing service level.
https://lao.ca.gov/Publications/Report/4825

The 2024-25 Budget: Deficit Update

Feb 20, 2024 - (Due to specific circumstances this year, changes in revenues are unlikely to have a significant effect on the state’s other major formula-driven spending requirements, specifically related to Proposition 2.)
https://lao.ca.gov/Publications/Report/4850

Long-term Capacity for Debt Payments Under Proposition 2

Dec 21, 2017 - Provisions of Proposition  2 Key Provisions of Proposition  2. Proposition  2 requires the state to make: (1) minimum annual payments toward certain eligible debts (until 2029 ‑30) and (2) deposits into the state ’s rainy day fund.
https://lao.ca.gov/Publications/Report/3727

The 2024-25 Budget: Proposition 2 Debt Payment Proposals

Mar 20, 2024 - Proposition 2 Proposition   2 Contains Annual Debt Payment Requirement. Proposition  2 created new rules regarding: (1)  deposits into the state ’s rainy ‑day fund and (2)  accelerating payments toward certain eligible debts.
https://lao.ca.gov/Publications/Report/4887

The 2018-19 May Revision: LAO Economic Outlook

May 12, 2018 - Figure 2 LAO May 2018 Economic Growth Scenario a Percent Change Unless Otherwise Indicated 2017
https://lao.ca.gov/Publications/Report/3829

Rethinking California's Reserve Policy

Apr 10, 2025 - In March of 2004, on the heels of the dot ‑com bust, voters passed Proposition  58, which created the Budget Stabilization Account (BSA). In the 2006 ‑07 budget, the Legislature deposited $472  million into the BSA and in 2007 ‑08 deposited $1.5  billion.
https://lao.ca.gov/Publications/Report/5028