Building Reserves to Prepare for a Recession

Mar 7, 2018 - By most measures, the recession of the early 1990s was more severe than the dot ‑com bust in the early 2000s. For example, unemployment in California reached 9. 7  p ercent in mid ‑ to late ‑1992, but peaked at 6. 9  p ercent after the dot ‑com bust.
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 2018-19 Budget: California Spending Plan (Final Version)

Oct 2, 2018 - Under the language, DOF can increase spending by up to $ 36  m illion at any point in the fiscal year and can increase or decrease spending by up to $13. 3  m illion on or after January 1, 2019. Compensation Cost Adjustment.
https://lao.ca.gov/Publications/Report/3870/10

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 - We Estimate the Administration Solved a Larger Budget Problem —$58   Billion. While the Governor cited a budget problem of $38  billion, we estimate the administration solved a budget problem of $58  billion.
https://lao.ca.gov/Publications/Report/4825

The 2024-25 Budget: Deficit Update

Feb 20, 2024 - The 2024-25 Budget: Deficit Update Deficit Update Under LAO Revenue Update, Budget Problem Grows by $15  Billion The state already faces a significant deficit this year — we estimate it totaled $58 billion under the administration’s revenue forecast at the time the Governor’s budget was proposed in January.
https://lao.ca.gov/Publications/Report/4850

Managing California’s Cash

Sep 3, 2019 - On a cash basis, the fund now stands at $7. 7  b illion (as of June  30, 2019) —representing over 13  p ercent of the state ’s internal borrowable resources. (The Department of Finance ’s [DOF ’s] most recent estimate of the budgetary balance of GGRF is much lower —$1. 3  b illion for the end of 2018 ‑19.
https://lao.ca.gov/Publications/Report/4092

The 2018-19 Budget: California Spending Plan (Final Version)

Oct 2, 2018 - Of the transferred amount, the budget provides (1)  $26. 6  m illion to address a historical budget shortfall in SPRF and $7. 7  m illion to build up the fund ’s year ‑end reserve; (2)  $ 3  m illion to continue support that was initiated in 2017 ‑18 for recruitment and training, off ‑highway vehicle grants, and abandoned watercraft abatement
https://lao.ca.gov/Publications/Report/3870/9

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