California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - These challenges would not be short-lived either. 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 2025-26 Budget: Initial Comments on the Governor's May Revision

May 17, 2025 - As we discuss later in this brief, the May Revision maintains a cost ‑of ‑living adjustment (COLA) and other spending increases for schools and community colleges despite the drop in funding. Baseline Spending Higher by $12   Billion.
https://lao.ca.gov/Publications/Report/5044

Cal Facts: 2016

Dec 5, 2016 - State Aims to Reduce Reliance on Costly Group Home Foster Care Placements While foster children living in family settings outnumber foster children living in group homes by approximately 9  to  1, total spending (all funds) is split roughly equally between the two groups.
https://lao.ca.gov/Publications/Report/3511/3

Federal Spending in California

Jan 18, 2017 - Postal Service employees) who live in California. The federal government paid an additional $10.3 bi llion in wages and salaries to members of the armed forces (including Coast Guard employees) and the Reserves (including the National Guard).
https://lao.ca.gov/Publications/Report/3531/3

Rethinking California's Reserve Policy

Apr 10, 2025 - A person saving for retirement does not know how long they will live or exactly what their expenses will be in retirement, but they nonetheless must plan for this eventuality by making the best possible choices in the meantime.
https://lao.ca.gov/Publications/Report/5028

The 2022-23 Budget: Fiscal Outlook for Schools and Community Colleges

Nov 17, 2021 - The Legislature could increase funding for the community colleges by providing more unrestricted funding, more restricted funding for specified purposes, or more support directly to students to address living costs.
https://lao.ca.gov/Publications/Report/4473

The 2023-24 Budget: Considering Inflation's Effects on State Programs

Nov 16, 2022 - Cases in which program spending is adjusted by certain factors, like a cost ‑of ‑living adjustment (COLA). These factors are set and approved in state law. These adjustments require limited annual legislative input, particularly when continuously appropriated.
https://lao.ca.gov/Publications/Report/4647

The 2019-20 Budget: California's Fiscal Outlook

Nov 14, 2018 - To be clear, this means we: Assume Cost ‑of ‑Living Increases Remain in Place. Consistent with recent practice, we have assumed a variety of programs receive cost ‑of ‑living adjustments across the period.
https://lao.ca.gov/Publications/Report/3896

The State Appropriations Limit [Publication Details]

Apr 12, 2000 - The State Appropriations Limit [Publication Details] HTML Description: California's state appropriations limit (SAL)--which grows annually by a population and cost-of-living factor--places an "upper bound" each year on the amount of monies that can be spent from state tax proceeds.
https://lao.ca.gov/Publications/Detail/719

New Inflation Poses Not So New Budget Risk

Dec 15, 2022 - Inflation Risk Is Really a Revenue Risk Although high inflation often is most associated with rising prices and a higher cost of living, from a state budget perspective, the overriding worry is on the revenue side.
https://lao.ca.gov/Publications/Report/4653