The 2026-27 Budget: Governor’s Office of Land Use and Climate Innovation Proposals

Mar 19, 2026 - Recommendation Weigh Merits of LCI Proposals Within Context of Overall Budget Strategy. As the budget picture becomes more clear in the next few months, we recommend the Legislature decide whether the merits of these proposals outweigh the resulting additional pressure on the General Fund both in 2026-27 and out-years.
https://lao.ca.gov/Publications/Report/5167

The 2026-27 Budget: Department of Developmental Services

Mar 13, 2026 - In 2016, the Legislature appropriated ongoing funding for the Disparity Funds Program, which awards grants to RCs and community ‑based organizations for strategies to reduce disparities in service authorizations, utilization, and spending.
https://lao.ca.gov/Publications/Report/5157

The 2026-27 Budget: Contract to Achieve Operational Efficiencies

Mar 10, 2026 - This causes the state to lose valuable time that could have been spent developing and implementing other cost reductions strategies. In addition, overly ambitious cost savings targets can mask, to an extent, the size of the structural deficit.
https://lao.ca.gov/Publications/Report/5156

How Have Past Stock Market Downturns Affected Income Tax Revenue? [EconTax Blog]

Mar 9, 2026 - This Time Might Be Different, but It Is Not Safe to Bet on It.   As our office warned last November, it now appears time to take seriously the notion that the stock market has become overheated. While there is a chance that this time is different and no such downturn is forthcoming, the risk appears strong enough that we have incorporated it into the state 's revenue outlook.  
https://lao.ca.gov/LAOEconTax/Article/Detail/852

How Have Past Stock Market Downturns Affected Income Tax Revenue? [EconTax Blog]

Mar 9, 2026 - This Time Might Be Different, but It Is Not Safe to Bet on It.   As our office warned last November, it now appears time to take seriously the notion that the stock market has become overheated. While there is a chance that this time is different and no such downturn is forthcoming, the risk appears strong enough that we have incorporated it into the state 's revenue outlook.  
https://lao.ca.gov/LAOEconTax/article/Detail/852

The 2026-27 Budget: California Highway Patrol Proposals

Mar 6, 2026 - The MVA ’s primary source of revenue is from vehicle registration fees, as well as —to a lesser degree —from driver ’s license and identification card fees. CHP receives roughly 60  percent of the MVA revenues ($3  billion) annually, with most of the remainder supporting activities at the Department of Motor Vehicles.
https://lao.ca.gov/Publications/Report/5152

The 2026-27 Budget: County Administration and H.R. 1 Implementation

Mar 5, 2026 - At the same time, individual county implementation will depend on strategies and resource allocation priorities of individual counties. To support successfully mitigating risks of payment error penalties, the Legislature will need to understand what changes to state and county processes will be required to address the largest contributors to error rates.
https://lao.ca.gov/Publications/Report/5149

The 2026-27 Budget: Medi-Cal Analysis

Mar 2, 2026 - Administration Identifies Several Strategies to Mitigate Disenrollment Impacts. The administration has indicated it will prioritize using administrative data to automatically identify individuals who are excluded or exempt from the community engagement requirement.
https://lao.ca.gov/Publications/Report/5146

Addressing Chronic Vacancies in Prison Mental Health Care

Feb 23, 2026 - Increasing Compensation Can Be a High ‑Cost Strategy. In general, compensation increases can be a high ‑cost strategy for filling vacancies. For example, the action plan estimates that it will cost $25   million ongoing to increase pay by roughly 3   percent for mental health positions at CDCR.
https://lao.ca.gov/Publications/Report/5134

The 2026-27 Budget: California Department of Corrections and Rehabilitation

Feb 23, 2026 - Assessment Expansion of Tele ‑Mental Health Is One Strategy That Could Help Alleviate Staffing Challenges. In our report Addressing Chronic Vacancies in Prison Mental Health Care , we find that the expansion of tele‑mental health is a promising strategy to address vacancies.
https://lao.ca.gov/Publications/Report/5137