Building Reserves to Prepare for a Recession

Mar 7, 2018 - These required deposits were to gradually increase from 1  p ercent of General Fund revenues in 2006 ‑ 07 t o 3  p ercent in 2008 ‑09 and every year thereafter. Proposition  58 allowed these deposits to be suspended by an executive order issued by the Governor.
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 2024-25 Budget: Deficit Update

Feb 20, 2024 - Specifically, our forecast is about $24 billion below the Governor’s budget across 2022‑23 to 2024‑25. All else equal, this means the budget problem is likely to be higher at the time of the May Revision.
https://lao.ca.gov/Publications/Report/4850

The 2024-25 Budget: Overview of the Governor's Budget

Jan 13, 2024 - We estimate the proposed budget includes about $3 billion in reversions. School and Community College Spending $15   Billion in Lower Spending on Schools and Community Colleges. The California Constitution sets a minimum annual funding requirement for schools and community colleges (otherwise known as Proposition  98 [1988]).
https://lao.ca.gov/Publications/Report/4825

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

Oct 16, 2023 - Using one ‑time funds to cover ongoing costs creates a deficit in the Proposition  98 budget the following year. Funds School Facilities Grants. The 2022 ‑23 budget package provided $1.3   billion one ‑time non ‑Proposition   98 General Fund to cover the state share for new construction and modernization projects under the School Facility Program (SFP).
https://lao.ca.gov/Publications/Report/4788

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

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 2019-20 Budget: California Spending Plan—Debt Liabilities

Oct 17, 2019 - Settle-Up Obligations Under Certain Conditions, State Creates a Proposition  98 “Settle-Up ” Obligation. Proposition  98 sets a minimum funding level for schools and community colleges. The minimum required funding level is based on a series of formulas that depend on numerous factors.
https://lao.ca.gov/Publications/Report/4106