The 2025-26 Budget: California's Fiscal Outlook

Nov 20, 2024 - Instead, much of the bounce appears to be tied to special forms of pay for high ‑income workers, such as bonuses and stock  compensation. Booming Stock Market Driving Income Growth. The recent run ‑up in the stock market, which appears tied to optimism surrounding artificial intelligence, is a primary driver of the rapid growth in pay to high ‑income workers.
https://lao.ca.gov/Publications/Report/4939

The 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - The remaining $25  million was made available through June 2028 for grants to legal service providers as follows: $10  million to the judicial branch for indigent civil legal services for individuals likely to be impacted by potential or actual federal actions. $10  million to the Department of Social Services (DSS) for immigration ‑related legal
https://lao.ca.gov/Publications/Report/5079

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

Jan 12, 2026 - Ongoing, the Governor ’s spending ‑related solutions provide $5  billion in savings within a few years. Appendix 1 provides a list of the Governor ’s budget solutions. Generates $5.6 Billion School and Community College Settle‑Up Obligation in 2025‑26.
https://lao.ca.gov/Publications/Report/5101

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

Feb 20, 2026 - For example, we recommend the Legislature: Do Not Suspend the $3  Billion True Up Into the Budget Stabilization Account (BSA). The Governor ’s budget proposes suspending a roughly $3  billion true-up deposit that otherwise would be required in 2025-26.
https://lao.ca.gov/Publications/Report/5133

Evolution of the Balance of the Budget Stabilization Account

Nov 14, 2018 - If so, in 2019 ‑20, the entire $1.7  billion estimated deposit would be transferred to the BSA and no additional money would be spent on infrastructure. Depending on which of these different types of deposits count toward the BSA ’s balance, the BSA would reach the 10  percent threshold in different years.
https://lao.ca.gov/Publications/Report/3900

The 2025-26 Budget: Overview of the Governor's Budget

Jan 13, 2025 - The reason for the reduction is the recent voter approval of Proposition  35 (2024), which requires the state to spend less MCO tax money on offsetting General Fund spending and more money on provider rate increases.
https://lao.ca.gov/Publications/Report/4951

Rethinking California's Reserve Policy

Apr 10, 2025 - We first recommend the cap on constitutional reserve deposits be raised from 10  percent to 50  percent of General Fund taxes. The increase could be phased in over time: 20  percent to take effect immediately after the next statewide election, 25  percent in 2030, and increasing by 5  percent every five years until the cap reaches a maximum of 50  percent in 2055.
https://lao.ca.gov/Publications/Report/5028

The 2019-20 Budget: California Spending Plan—Debt Liabilities

Oct 17, 2019 - Sometimes the state settles up as a fiscal year is ending, but other times, the state does not settle up immediately. In the latter cases, the state creates an outstanding fiscal obligation known as a settle-up obligation.
https://lao.ca.gov/Publications/Report/4106

The 2018-19 Budget: California Spending Plan (Final Version)

Oct 2, 2018 - Additionally, caseload funding cannot increase or decrease by a step of more than 5  p ercent each year, even if the caseload increases or decreases by more than 5  p ercent. Caseload funding will not change in years when the caseload is steady and does not increase or decrease by more than 5  p ercent.
https://lao.ca.gov/Publications/Report/3870/7

The 2016-17 Budget: The Governor’s Reserve Proposal

Feb 19, 2016 - Under Proposition  2, the state must put money into the BSA until its total reaches a maximum amount of 10  percent of General Fund taxes. Currently, this maximum level is about $12  billion. Once the BSA reaches this maximum, funds that would have been transferred into the BSA must be expended on building and maintaining infrastructure.
https://lao.ca.gov/Publications/Report/3348