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 - In this publication we: provide an overview of the 2025 ‑26 budget package, give a brief description of how the budget process unfolded, and then highlight the major features of the budget approved by the Legislature and signed by the Governor.
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 2018-19 Budget: Repaying the CalPERS Borrowing Plan

Apr 4, 2018 - As an example, if a particular fund represents 5  p ercent of CalPERS ’ state employer contributions each year, it would repay 5  p ercent of the loan over its lifetime. Senate  Bill 84 also authorizes the General Fund to advance money on behalf of other state funds (for example, if those funds have issues making repayments), and later be reimbursed.
https://lao.ca.gov/Publications/Report/3797

The 2019-20 Budget: Structuring the Budget: Reserves, Debt and Liabilities

Feb 5, 2019 - The Governor also uses $4. 5  b illion to address budgetary borrowing, including to repay all outstanding special fund loans, undo two budgetary deferrals, and repay all outstanding settle up owed to schools and community colleges.
https://lao.ca.gov/Publications/Report/3925

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

Oct 2, 2018 - In general, it reflects budgetary legislation that the Governor has signed through June 30, 2018. In some cases, as noted, we discuss budget actions approved by the Legislature after June 2018. Spending Overall Spending.
https://lao.ca.gov/Publications/Report/3870

California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - There are signs of similar market overexuberance related to AI happening now. At this point, stock prices are trading at a rich premium relative to corporate profits. Moreover, investors have been aggressive in taking on high levels of margin debt (borrowing to buy stocks), which has reached approximately three times the historical norm.
https://lao.ca.gov/Publications/Report/5104

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - This is about $5  billion larger than the budget problem anticipated by the administration in June. Figure  3 provides our estimates of the General Fund condition, including our estimate of the budget problem.
https://lao.ca.gov/Publications/Report/5091

The 2019-20 Budget: California Spending Plan (Final Version)

Oct 17, 2019 - Beginning in 2020 ‑21, this program will be supported by 5  p ercent of the annual revenue into the GGRF up to $ 130  m illion. Starting in 2023 ‑24, if GGRF revenues are not sufficient to generate $ 130  m illion for the program, the General Fund will be used to make up the difference.
https://lao.ca.gov/Publications/Report/4083

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