The 2025-26 Budget: California's Fiscal Outlook

Nov 20, 2024 - One path is falling interest rates and expansion of money available for lending and investment. A key driver of California ’s economic slump over the last two years has been the Federal Reserve ’s efforts to tamp down inflation by raising interest rates and shrinking how much money is available for lending and investment.
https://lao.ca.gov/Publications/Report/4939

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - AI Enthusiasm Boosting Revenues, but for How Long? Middling Corporation and Sales Tax Collections in Line With Generally Weak Economic Conditions. Both the California and U.S. economies currently face significant headwinds.
https://lao.ca.gov/Publications/Report/5091

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

Feb 5, 2019 - Specifically, if the state transfers these funds to a pension system, the system ’s board can invest the funds, likely earning a higher rate of return than the funds would earn invested as state reserves.
https://lao.ca.gov/Publications/Report/3925

The 2024-25 Budget: Proposition 2 Debt Payment Proposals

Mar 20, 2024 - Supplemental Pensions Payments Employers May Contribute Any Amount of Money Above What Is Required. Pension boards determine —either according to actuarial standards or statutory requirements —how much money employers must contribute to the pension system each year to address any existing unfunded liabilities.
https://lao.ca.gov/Publications/Report/4887

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

Feb 20, 2026 - The 2026-27 Budget: How to Use One-Time Revenue Improvements The 2026-27 Budget How to Use One-Time Revenue Improvements Recent stock market performance continues to boost income tax collections. In our Fiscal Outlook , we strongly advised the Legislature to treat near-term strength in tax collections as temporary because we expect these gains to reverse.
https://lao.ca.gov/Publications/Report/5133

The 2026-27 Budget: How to Use One-Time Revenue Improvements [Publication Details]

Feb 20, 2026 - The 2026-27 Budget: How to Use One-Time Revenue Improvements [Publication Details] Translate Our Website This Google ™ translation feature provided on the Legislative Analyst's Office (LAO) website is for informational purposes only.
https://lao.ca.gov/Publications/Detail/5133

The 2018-19 Budget: Repaying the CalPERS Borrowing Plan

Apr 4, 2018 - How the Plan Works. Figure  1 shows how this borrowing plan is meant to work. Under the plan, the State Controller transfers $ 6  b illion from the PMIA to CalPERS, which CalPERS then invests to help pay down the unfunded liability.
https://lao.ca.gov/Publications/Report/3797

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

Oct 17, 2019 - These pension unfunded liabilities largely are due to (1)  historical contributions being below recommended amounts, (2)  past actual investment returns being lower than actuaries assumed, and (3)  changes to actuarial assumptions (for example, assuming that people will live longer and that the system ’s investment returns will be lower in the future).
https://lao.ca.gov/Publications/Report/4106

The 2019-20 May Revision: Opportunity Zones

May 11, 2019 - To gauge the effect of these state credits, we looked at how New Market Tax Credit investments changed in states after they adopted state credits and compared these investment changes to similar states without state credits (using a statistical method known as synthetic control).
https://lao.ca.gov/Publications/Report/4038

The 2019-20 Budget: Undoing California’s Outstanding Budgetary Deferrals

Mar 26, 2019 - Depositing Money Into Reserves Generates Interest Payments. Money held in the state ’s cash reserves is not idle. The State Treasurer ’s Office (STO) invests state funds, including reserves, in the Pooled Money Investment Account (PMIA), generating an investment return.
https://lao.ca.gov/Publications/Report/3988