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 - Amid these conditions, California businesses have pared back hiring, resulting in no payroll job growth in the state so far this year. California consumers similarly are limiting spending, with sales of taxable goods flat over the last year.
https://lao.ca.gov/Publications/Report/5091

Building Reserves to Prepare for a Recession

Mar 7, 2018 - Given these formulas, General Fund spending on schools and community colleges tends to increase when revenues are growing and decline when revenues decline. The Legislature can provide more than the minimum funding level for schools and community colleges, but it typically funds at the guarantee.
https://lao.ca.gov/Publications/Report/3769

The 2018-19 May Revision: LAO Economic Outlook

May 12, 2018 - With a limited number of people looking for jobs, competition among employers for workers is high. This competition typically forces employers to pay higher wages to attract new workers. Rising wage costs, in turn, cause businesses to raise th eir prices.
https://lao.ca.gov/Publications/Report/3829

The 2021-22 Budget: Overview of the Spending Plan (Final Version)

Oct 27, 2021 - Dymally Institute — Regional K ‑16 education collaboratives — Hastings College of the Law California Institute on Law, Neuroscience, and Education — Hastings College of the Law Alternative campus safety program College savings accounts (General Fund share) — CCC Expanded Entitlement Program ‑ base awards — CCC Expanded Entitlement Program ‑
https://lao.ca.gov/Publications/Report/4448/1

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

Rethinking California's Reserve Policy

Apr 10, 2025 - Options to Reach This Higher Threshold If the cap is raised substantially—ideally to 50 percent by 2055—the state would also need to set aside more in reserve deposits to dependably reach this higher amount.
https://lao.ca.gov/Publications/Report/5028

Cap-and-Trade Extension: Issues for Legislative Oversight

Dec 12, 2017 - At the time this report was prepared, CARB staff had already begun public workshops to discuss some of the changes to the post ‑ 2020 c ap ‑and ‑trade regulation required by A B 398 , as well as other potential changes identified by the board.
https://lao.ca.gov/Publications/Report/3719

The 2024-25 California Spending Plan: Other Provisions

Oct 2, 2024 - Loan to the Contingent Fund of the Medical Board of California. The budget includes a $27  million loan to the Contingent Fund of the Medical Board of California (Contingent Fund) from the High Polluter Repair or Removal Account, which supports the Bureau of Automotive Repair.
https://lao.ca.gov/Publications/Report/4934

The 2024-25 California Spending Plan: Other Provisions

Oct 2, 2024 - Loan to the Contingent Fund of the Medical Board of California. The budget includes a $27  million loan to the Contingent Fund of the Medical Board of California (Contingent Fund) from the High Polluter Repair or Removal Account, which supports the Bureau of Automotive Repair.
https://lao.ca.gov/Publications/Report/4934/governors-office-of-emergency-services