The 2024-25 Budget: Proposition 2 Debt Payment Proposals

Mar 20, 2024 - Proposition 2 Proposition   2 Contains Annual Debt Payment Requirement. Proposition  2 created new rules regarding: (1)  deposits into the state ’s rainy ‑day fund and (2)  accelerating payments toward certain eligible debts.
https://lao.ca.gov/Publications/Report/4887

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 2016-17 Budget: California Spending Plan

Oct 5, 2016 - Proposition  47 Workload ($21  million). The budget provides $21  million in 2016 –17 for trial courts to process resentencing and reclassification petitions from offenders convicted of felonies that Proposition  47 (2014) reduced to misdemeanors.
https://lao.ca.gov/Publications/Report/3487/10

Long-term Capacity for Debt Payments Under Proposition 2

Dec 21, 2017 - Provisions of Proposition  2 Key Provisions of Proposition  2. Proposition  2 requires the state to make: (1) minimum annual payments toward certain eligible debts (until 2029 ‑30) and (2) deposits into the state ’s rainy day fund.
https://lao.ca.gov/Publications/Report/3727

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

The 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - Proposition   98 “Settle Up ” ($1.9   Billion). Proposition  98 (1988) sets a minimum funding requirement for schools and community colleges based on formulas in the State Constitution. The state makes an initial estimate of this requirement when it enacts the budget, then revises this estimate over the following two years to reflect updated data.
https://lao.ca.gov/Publications/Report/5079

The 2022-23 Budget: Initial Comments on the Governor's May Revision

May 16, 2022 - It includes: (1)  the $34  billion in spending choices using the overall General Fund surplus (this figure excludes reserve deposits, tax refunds, and debt payments, which are shown instead in Figure   4) and (2)  the $33  billion surplus within the school and community college budget.
https://lao.ca.gov/Publications/Report/4598

The 2022-23 Budget: Overview of the Spending Plan

Oct 12, 2022 - These funds supplement existing funds from Proposition 51, the state school bond approved by voters in 2016. (Funding from Proposition 51 will likely be exhausted in 2022‑23.) The remaining $100 million is for schools to construct or renovate State Preschool, transitional kindergarten, and full‑day kindergarten classrooms.
https://lao.ca.gov/Publications/Report/4616

The 2025-26 Budget: Initial Comments on the Governor's May Revision

May 17, 2025 - Rebenching Proposition   98 for Wildfire ‑Related Property Tax Losses. The May Revision proposes rebenching the Proposition  98 minimum funding guarantee to account for property tax revenue losses resulting from the January 2025 Los Angeles wildfires.
https://lao.ca.gov/Publications/Report/5044

Rethinking California's Reserve Policy

Apr 10, 2025 - (Proposition  2 also created the Proposition  98 Reserve, which was discussed in the box previously.) After Proposition  2 was passed, the state saved significantly more in reserves, particularly when compared to the savings levels from the early 1980s through the early 2010s.
https://lao.ca.gov/Publications/Report/5028