Building Reserves to Prepare for a Recession

Mar 7, 2018 - Budget Stabilization Account Proposition   58 Governed BSA From 2004 t o 2014. Until 2014, the BSA was governed by Proposition  58. Passed by voters in 2004, Proposition   58 r equired the state to make an annual transfer into the BSA.
https://lao.ca.gov/Publications/Report/3769

California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - After the dot-com bust and the Great Recession, it took four and five years, respectively, for revenues to recover. Incorporating revenue risk into the budget now, therefore, reflects prudence, not pessimism.
https://lao.ca.gov/Publications/Report/5104

The 2024-25 Budget: Deficit Update

Feb 20, 2024 - Roughly, a $24 billion erosion in revenues corresponds to a $15 billion increase in the budget problem. This would expand the $58 billion estimated deficit to $73 billion under our updated revenue forecast.
https://lao.ca.gov/Publications/Report/4850

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - The state solved a $27  billion deficit in 2023 ‑24, a $55  billion deficit in 2024 ‑25, and a $15  billion deficit in 2025 ‑26 (in addition to roughly $28  billion in proactive budget ‑balancing actions taken the year before).
https://lao.ca.gov/Publications/Report/5091

Whether or Not to Tap Reserves to Solve Estimated Budget Problem Emerges as Key Fiscal Decision Facing California’s Legislature

Apr 19, 2023 - Other downturns, such as the 2001 so-called dot-com recession, had severe fiscal implications while inflicting somewhat milder economic damage. The 2008 Great Recession had brutal effects on both the state ’s economy and budget.
https://lao.ca.gov/Publications/Report/4762

The 2023-24 Budget: Multiyear Assessment

Feb 15, 2023 - Three of those —the recession in the early 1990s, the dot ‑com bust in the early 2000s, and the Great Recession —resulted in large revenue shortfalls and ensuing multiyear deficits, even for some years after each recession ended.
https://lao.ca.gov/Publications/Report/4687

The 2023-24 Budget: Overview of the Spending Plan (Final Version)

Oct 16, 2023 - It also includes Chapter  58 of 2023 (S B  146 , Gonzalez), which authorizes the use of two project delivery methods —progressive design ‑build and job order contracting —under certain circumstances.
https://lao.ca.gov/Publications/Report/4788

Evolution of the Balance of the Budget Stabilization Account

Nov 14, 2018 - Reserve Deposits Under Proposition  58 Proposition  58 Governed BSA Deposits From 2004 to 2014. With the approval of Proposition  58 in 2004, voters created the BSA. Proposition  58 required the state to make an annual deposit into the BSA.
https://lao.ca.gov/Publications/Report/3900

The 2023-24 California Spending Plan: Other Provisions

Nov 8, 2023 - Chapter 58 of 2023 (SB 146, Gonzalez) Infrastructure Contracting. Expands DWR ’s and Caltrans ’ authorities to use certain alternative procurement methods. Chapter 59 of 2023 (SB 147, Ashby) Fully Protected Species.
https://lao.ca.gov/Publications/Report/4814

A History of California’s Budget Reserves

Mar 24, 2017 - Proposition 58 (2004) established the BSA and required the state to deposit into it a certain percentage of estimated General Fund revenues. Proposition 2 (2014) changed the rules regarding deposits into and withdrawals from the BSA.
https://lao.ca.gov/Publications/Report/3630