Understanding $100 Billion in Spending Growth: Causes and Fiscal Implications

Apr 28, 2026 - …At a Time of High Inflation. After decades of relatively low inflation, prices for many goods and services began rising rapidly in 2021, reflecting supply chain disruptions and strong demand. Inflation peaked in mid ‑2022 and began to moderate in 2023 as supply conditions improved and the Federal Reserve increased interest rates.
https://lao.ca.gov/Publications/Report/5176

The 2018-19 May Revision: LAO Economic Outlook

May 12, 2018 - With a limited number of people looking for jobs, competition among employers for workers is high. This competition typically forces employers to pay higher wages to attract new workers. Rising wage costs, in turn, cause businesses to raise th eir prices.
https://lao.ca.gov/Publications/Report/3829

The 2023-24 Budget: Considering Inflation's Effects on State Programs

Nov 16, 2022 - High inflation has resulted in delays as developers have needed to spend more time securing additional capital—above what was originally anticipated—to finance the projects before construction can begin.
https://lao.ca.gov/Publications/Report/4647

The 2025-26 Budget: California's Fiscal Outlook

Nov 20, 2024 - Revenues Run Ahead of Broader Economy State ’s Job Market and Consumer Spending Remain Lackluster … California ’s economy has been in an extended slowdown for the better part of two years, characterized by a soft labor market and weak consumer spending.
https://lao.ca.gov/Publications/Report/4939

The 2018-19 Budget: California's Fiscal Outlook

Nov 15, 2017 - Together, these result in cost increases to the state of about $1  billion per year. Employee Salary and Benefits. We estimate state employee salary and benefit costs will increase pursuant to current labor agreements and adjust salary increases for inflation after those agreements expire.
https://lao.ca.gov/Publications/Report/3718

The 2018-19 May Revision: LAO Revenue Outlook

May 12, 2018 - Figure 1 LAO May 2018 Revenue Outlook (Economic Growth Scenario) General Fund (In Millions) BSA = Budget Stabilization Account. Personal Income Tax (PIT) Healthy Growth in Wages and Salaries Drive PIT Growth.
https://lao.ca.gov/Publications/Report/3830

The 2024-25 Budget: Overview of the Spending Plan

Sep 6, 2024 - These ongoing increases are partly offset by one‑time base General Fund reductions totaling $200 million in 2024‑25. In a related budget action, the state plans to reduce ongoing base General Fund support for UC and CSU by a total of $774 million in 2025‑26.
https://lao.ca.gov/Publications/Report/4922

The 2023-24 Budget: Overview of the Spending Plan (Final Version)

Oct 16, 2023 - The budget package includes $2.7 billion in one time funds from various state and federal fund sources to support the following: (1) monthly rate supplement payments to providers based on region and number of enrolled children from January 1, 2024 through June 30, 2025; (2) a one-time provider lump-sum transitional payment; (3) a
https://lao.ca.gov/Publications/Report/4788

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

Oct 2, 2018 - However, as a means of tracking project costs, the Legislature adopted supplemental reporting language as part of the 2018 ‑ 19 b udget that requires the Department of Finance to provide a list of enacted budget proposals related to the Integrated Solution by January 1, 2020.
https://lao.ca.gov/Publications/Report/3870/12

The 2019-20 Budget: Proposition 98 Outlook

Nov 14, 2018 - The exact one ‑time allotment has ranged from a high of $1. 2  b illion in 2014 ‑ 15 t o a low of $ 413  m illion in 2018 ‑19. In this context, the state ’s cushion would be relatively modest even if it allocated the entire $ 480  m illion for one ‑time activities.
https://lao.ca.gov/Publications/Report/3897