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

Feb 20, 2026 - Instead, using one-time resources to improve budget resilience would help the state meet its coming fiscal challenges. Figure 1 The State ’s New Wall of Debt (In Billions)
https://lao.ca.gov/Publications/Report/5133

California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - 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. In short, although the economy is not in recession and the stock market has been booming, the budget is only precariously balanced.
https://lao.ca.gov/Publications/Report/5104

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - This  is not a prediction of what will happen —state and federal laws and policies will change in the coming years —but rather serves as a baseline to help the Legislature understand its starting place.
https://lao.ca.gov/Publications/Report/5091

The 2025-26 Budget: Undertaking Fiscal Oversight

Feb 24, 2025 - However, proactive efforts to help improve the amount of information that is available could help the Legislature gain sufficient insight so as to determine which programs to prioritize over others. Are Programs Providing Expected Benefits?
https://lao.ca.gov/Publications/Report/4983

The 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - Under state law, the administration can transfer funds to the Medical Provider Interim Payment (MPIP) Fund to help cover an appropriation deficiency in Medi ‑Cal. These transfers are capped as a percent of Medi ‑Cal ’s appropriation.
https://lao.ca.gov/Publications/Report/5079

The 2026-27 Budget: California's Fiscal Outlook [Publication Details]

Nov 19, 2025 - Each year, our office publishes the Fiscal Outlook in anticipation of the upcoming budget season. This report gives the Legislature our independent estimates and analysis of the state’s General Fund budget condition with the goal of helping lawmakers prepare for the 2026-27 budget process.
https://lao.ca.gov/Publications/Detail/5091

The 2024-25 Budget: Deficit Update

Feb 20, 2024 - As such, maintaining other tools like reserves and cost shifts now could help mitigate reductions in these areas in the future. Options Possibly Available to Reduce One-Time and Temporary Spending State Allocated Large Shares of Surpluses to Temporary Purposes, Although Some Has Been Disbursed or Already Proposed for Reduction.
https://lao.ca.gov/Publications/Report/4850

The 2025-26 Budget: California's Fiscal Outlook

Nov 20, 2024 - This is not a prediction of what will happen —state and federal laws and policies will change in the coming years —but rather serves as a baseline to help the Legislature understand its starting place.
https://lao.ca.gov/Publications/Report/4939

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

Nov 15, 2024 - Some have asked why this is the case and whether aligning LAO and DOF estimates would be helpful to the Legislature. Although aligning revenue estimates might reduce the potential for confusion, doing so would risk creating bigger problems.
https://lao.ca.gov/Publications/Report/4938

Rethinking California's Reserve Policy

Apr 10, 2025 - Reserves help smooth the difference —funds are saved when revenues are surging (the green regions in the figure below) and then spent when revenues decline below that long ‑term trajectory (the red regions).
https://lao.ca.gov/Publications/Report/5028