The 2026-27 Budget [Publication Details]

Jan 1, 2026 - As we release publications aimed at addressing the 2026-27 budget situation, we will add them to this index page.
https://lao.ca.gov/Publications/Detail/5107

California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - California’s Strong Revenue Trends Mask Looming Budget Risk January 23, 2026 Tweet Gabriel PetekLegislative Analyst History suggests that fiscal risks can build during times when they are easiest to ignore.
https://lao.ca.gov/Publications/Report/5104

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

Jan 12, 2026 - On a technical basis, it can be thought of as the end balance of the state ’s General Fund —the money that remains after accounting for all of the state ’s expected revenues and spending. The State Constitution has a balanced budget requirement, which means the balance of the SFEU must be set above zero for the upcoming fiscal year.
https://lao.ca.gov/Publications/Report/5101

The 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - Under state law, the administration can transfer funds to the Medical Provider Interim Payment (MPIP) Fund to help cover an appropriation deficiency in Medi ‑Cal. These transfers are capped as a percent of Medi ‑Cal ’s appropriation.
https://lao.ca.gov/Publications/Report/5079

Rethinking California's Reserve Policy

Apr 10, 2025 - In addition to creating new rules for reserve deposits, Proposition  2 created new rules regarding when otherwise ‑required deposits can be suspended and when funds can be withdrawn from the BSA. Specifically, suspensions or withdrawals can only occur if the Governor declares a budget emergency.
https://lao.ca.gov/Publications/Report/5028

The 2025-26 Budget: Undertaking Fiscal Oversight

Feb 24, 2025 - Can the Entire Program Be Evaluated, or Should Oversight Focus on Specific Components? Some programs can be assessed comprehensively more easily than others. Often, programs that are more targeted or only provide a single type of service can be good candidates for comprehensive review.
https://lao.ca.gov/Publications/Report/4983

California's Legislative Analyst's Office and the Value of Independence

Nov 15, 2024 - Here, the LAO and DOF approaches can complement one another. For example, the Legislature can compare DOF revenue estimates to our main forecast to determine if it is comfortable with the risks associated with them.
https://lao.ca.gov/Publications/Report/4938

The 2025-26 Budget: Multiyear Budget Outlook

May 24, 2025 - While our revenue forecast is designed to balance the risk of over- and underestimation, history shows that actual revenues can vary from our median projection by billions or even tens of billions of dollars over a multiyear period.
https://lao.ca.gov/Publications/Report/5052

The 2024-25 Budget: Initial Comments on the Governor’s May Revision

May 17, 2024 - After a budget emergency is declared, the state can withdraw up to half of the constitutional balance of the BSA. (The Legislature also can withdraw the entire “discretionary ” balance of the BSA at any time, which are amounts that were deposited into the fund on top of Proposition  2 requirements.)
https://lao.ca.gov/Publications/Report/4902

The 2024-25 Budget: Deficit Update

Feb 20, 2024 - Other tools, like reserve withdrawals and cost shifts, also can be used only once, but at any time. Saving them to deploy in the future can help the Legislature avoid cuts to ongoing services —which involve very difficult decisions.
https://lao.ca.gov/Publications/Report/4850