The 2017-18 Budget: Initial Comments on the Governor’s May Revision

May 13, 2017 - While reducing state liabilities is a laudable goal, using money borrowed from the investment pool for this purpose is a very new idea. Although the state has borrowed funds from the investment pool in the past —typically to cover cash flow needs during economic downturns —the Governor ’s proposal is a significant deviation from past practice in the size, timing, and purpose of this type of borrowing.
https://lao.ca.gov/Publications/Report/3669

The 2026-27 Budget: Child Care and State Preschool

Mar 19, 2026 - Three ‑ and four ‑year old children are generally eligible for State Preschool if their family earns at or below the state median income ($109,904 annual income for a family of three and $127,338 annual income for a family of four).
https://lao.ca.gov/Publications/Report/5168

CalSTRS Funding Update

Jul 19, 2018 - By the latter years of the Great Recessi on, this unfunded liability had grown significantly and CalSTRS was estimating that it would run out of money by the mid-2040s —a short time horizon for a pension system.
https://lao.ca.gov/Publications/Report/3873

The 2026-27 Budget: Proposition 98 Guarantee and K-12 Spending Plan

Feb 4, 2026 - This approach would help protect district cash flow by reducing the state’s reliance on deferrals to manage future downturns. A third option is to provide additional funding for district pension costs.
https://lao.ca.gov/Publications/Report/5110

Volatility of the Personal Income Tax Base

Feb 8, 2017 - Imputed interest includes investment income earned on insurance policies, the value of implicit services provided by banks and other lenders, and interest earned on employee pension plans. Transfer Payments.
https://lao.ca.gov/Publications/Report/3548

The 2024-25 Budget: The Governor’s Proposition 98 Funding Maneuver

Feb 15, 2024 - We  have described how the state ’s cash management system works in earlier publications, including: Managing California’s Cash and An Update on the State’s Cash Management Situation . Budget Position Is Currently Weak.
https://lao.ca.gov/Publications/Report/4840

The 2021-22 Spending Plan: Proposition 98 and K-12 Education

Oct 25, 2021 - Collecting data and conducting program evaluations. a The local match can be met either through cash contributions or through services or resources of comparable value, as determined by the California Department of Education.
https://lao.ca.gov/Publications/Report/4466

Update on State and School District Reserves

Apr 5, 2020 - This includes, for example, managing cash flow, addressing unexpected costs, and saving for large purchases. For example, regarding cash flow, while districts ’ largest expense —salaries —is paid relatively evenly throughout the school year, districts receive revenue on a more uneven schedule.
https://lao.ca.gov/Publications/Report/4216

The 2026-27 Budget: Fiscal Outlook for Schools and Community Colleges

Nov 19, 2025 - Whereas a deferral provides up ‑front state savings but creates future costs and weakens district cash flow, the advance payment is an up ‑front state cost that allows future savings and improves district cash flow.
https://lao.ca.gov/Publications/Report/5093

State Budget Effects of Recent Federal Actions to Address COVID-19

Apr 5, 2020 - First, the federal government provided about $120 million in additional UI administration money to California. Second, the legislation provides federal funding to cover the full cost of the expanded benefits and eligibility provided by FFCRA.
https://lao.ca.gov/Publications/Report/4217