The 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - Similar to other forms of borrowing, undoing these deferrals in the future (and reverting payments to their typical schedule) will require the state to provide one‑time back payments to the universities.
https://lao.ca.gov/Publications/Report/5079

The 2026-27 Budget: How to Use One-Time Revenue Improvements

Feb 20, 2026 - The Governor ’s budget proposes suspending a roughly $3  billion true-up deposit that otherwise would be required in 2025-26. We recommend the Legislature not suspend this deposit. Make a Smaller Withdrawal From the BSA.
https://lao.ca.gov/Publications/Report/5133

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

Jan 12, 2026 - The State Constitution sets a minimum spending requirement for schools and community colleges. For 2025‑26, this requirement is up $6.9 billion under the administration’s estimates, but the Governor’s budget provides $5.6 billion less than this revised estimate.
https://lao.ca.gov/Publications/Report/5101

The 2025-26 Budget: Multiyear Budget Outlook

May 24, 2025 - Other Medi-Cal solutions aim to constrain costs —for instance, increasing pharmacy rebates —and end some forms of additional rate and service payments. One of the other large areas of solutions is in In-Home Supportive Services (IHSS).
https://lao.ca.gov/Publications/Report/5052

California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - Second, the Governor proposed suspending a $2.8  billion true-up deposit to the state ’s reserve that otherwise would be required. This proposal helps balance the budget but runs counter to the basic fiscal logic that stronger-than-expected revenues should be used to build reserves.
https://lao.ca.gov/Publications/Report/5104

The 2025-26 Budget: California's Fiscal Outlook

Nov 20, 2024 - Because this form of compensation is tied to the company ’s stock price, it rises when stock prices rise. Other forms of pay, such as bonuses to workers in the financial sector, also tend to rise when financial markets are doing well.
https://lao.ca.gov/Publications/Report/4939

The 2025-26 Budget: Undertaking Fiscal Oversight

Feb 24, 2025 - While this oversight can take a few forms, the Legislature ’s oversight function is often exercised through policy and budget committee hearings. Fiscal oversight is distinct from other important types of legislative oversight —such as authorizing audits that determine the degree to which the administration is implementing programs in accordance with law, or investigating potential instances of waste, fraud, or abuse.
https://lao.ca.gov/Publications/Report/4983

The 2023-24 Budget: State Appropriations Limit Estimates

Feb 1, 2023 - Some of these spending reductions include excluded spending, largely in the form of capital outlay. A larger budget problem would necessitate identifying additional budget solutions, such as spending reductions.
https://lao.ca.gov/Publications/Report/4667

California's Legislative Analyst's Office and the Value of Independence

Nov 15, 2024 - But adopting a budget requires a specific revenue estimate, so what to do? Here, the LAO and DOF approaches can complement one another. For example, the Legislature can compare DOF revenue estimates to our main forecast to determine if it is comfortable with the risks associated with them.
https://lao.ca.gov/Publications/Report/4938

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