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 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - This is because constitutional spending requirements under Proposition  98 (1988) and Proposition  2 (2014) almost entirely offset revenue gains. Moreover, we estimate costs in other programs to be about $6  billion higher than anticipated.
https://lao.ca.gov/Publications/Report/5091

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

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

The 2019-20 Budget: California Spending Plan—Debt Liabilities

Oct 17, 2019 - Special Fund Loans Throughout the 2000s, particularly in response to the dot-com bust and Great Recession, the state loaned amounts to the General Fund from other state accounts, particularly special funds to address General Fund budget problems.
https://lao.ca.gov/Publications/Report/4106

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

Jan 12, 2026 - Under two voter initiatives, the State Constitution requires the state to set aside a share of revenues for schools and community colleges (Proposition  98, 1988) and debt payments and reserve deposits (Proposition  2, 2014).
https://lao.ca.gov/Publications/Report/5101

The 2015-16 Budget: Effectively Implementing the 2014 Water Bond [Publication Details]

Feb 11, 2015 - The 2015-16 Budget: Effectively Implementing the 2014 Water Bond [Publication Details] The 2015-16 Budget: Effectively Implementing the 2014 Water Bond Format: HTML Description: In August 2014, the Legislature approved Chapter 188, Statutes of 2014 (AB 1471, Rendon), which placed before the voters a water bond measure primarily aimed at increasing the supply of clean, safe, and reliable water and restoring habitat.
https://lao.ca.gov/Publications/Detail/3171

The 2015-16 Budget: Overview of the Governor's Budget [Publication Details]

Jan 13, 2015 - Even bigger gains of a few billion dollars more are possible in 2014-15. These additional 2014-15 revenues will go largely or entirely to schools and community colleges and could result in a few billion dollars of higher ongoing state payments to schools.
https://lao.ca.gov/Publications/Detail/3157

The 2015-16 Budget: Major Features of the Adopted Plan (Overview of Adopted Plan)

Jun 19, 2015 - General Fund revenue growth was much higher in 2014‑15, increasing at a very healthy 7.7  percent rate. General Fund spending is largely flat across 2014‑15 and 2015‑16, increasing at only 0.8  percent.
https://lao.ca.gov/Publications/Report/3279

Evolution of the Balance of the Budget Stabilization Account

Nov 14, 2018 - Deposit Made Under Rules of Proposition  58 in 2014 ‑15 Budget Package. In the 2014 ‑15 budget package, the Legislature made a deposit into the BSA of $1.6  billion under the rules of Proposition  58.
https://lao.ca.gov/Publications/Report/3900