Long-term Capacity for Debt Payments Under Proposition 2

Dec 21, 2017 - Provisions of Proposition  2 Key Provisions of Proposition  2. Proposition  2 requires the state to make: (1) minimum annual payments toward certain eligible debts (until 2029 ‑30) and (2) deposits into the state ’s rainy day fund.
https://lao.ca.gov/Publications/Report/3727

Rethinking California's Reserve Policy

Apr 10, 2025 - (In fact, Figure  7 likely overstates California ’s reserve balances compared to other states because the data appears to include the SFEU in the state ’s rainy day fund balances, although it is not a true rainy day fund.)
https://lao.ca.gov/Publications/Report/5028

The 2024-25 Budget: Proposition 2 Debt Payment Proposals

Mar 20, 2024 - Proposition 2 Proposition   2 Contains Annual Debt Payment Requirement. Proposition  2 created new rules regarding: (1)  deposits into the state ’s rainy ‑day fund and (2)  accelerating payments toward certain eligible debts.
https://lao.ca.gov/Publications/Report/4887

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - However, our Fiscal Outlook revenue forecast, shown in Figure  2 , reflects a smaller, temporary upgrade which reverses beginning in 2026 ‑ 27 —resulting in 2026 ‑27 revenues being in line with budget act estimates.
https://lao.ca.gov/Publications/Report/5091

The 2021-22 Budget: The Governor’s Proposition 2 Proposals

Apr 26, 2021 - How Proposition  2 Works Key Provisions of Proposition  2 Calculation. Proposition  2 made two major constitutional changes to state budgeting. First, it created new rules for minimum annual deposits into the Budget Stabilization Account (BSA), the state ’s rainy-day fund.
https://lao.ca.gov/Publications/Report/4418

Rethinking California's Reserve Policy [Publication Details]

Apr 10, 2025 - Reserves allow the state to ensure stable funding for its services over time, even when revenue fluctuates unpredictably. Over the last few years, the state has indeed experienced significant fluctuations—large surpluses followed by significant deficits. This volatility has prompted interest in changes to the state’s reserve policy.
https://lao.ca.gov/Publications/Detail/5028

Tempered Expectations

Dec 9, 2019 - Consider how the following variables aligned in such a way to facilitate the state ’s improved fiscal condition: An extended ten year-plus —now a record in duration —period of uninterrupted economic growth; A more than tripling of stock market valuations since 2009; Voter-approved tax increases (Proposition  30 in 2012 and Proposition  55 in 2016), the timing of which coincided with an economic
https://lao.ca.gov/Publications/Report/4122

Evolution of the Balance of the Budget Stabilization Account

Nov 14, 2018 - Reserve Deposits Under Proposition  2 Proposition  2 Now Governs BSA Deposits. In November 2014, voters approved Proposition  2. In addition to other changes, Proposition  2 created a set of formulas that specified minimum annual amounts the state must deposit into the BSA and use to pay down certain debts.
https://lao.ca.gov/Publications/Report/3900

Building Reserves to Prepare for a Recession

Mar 7, 2018 - Introduction In his 2018 ‑ 19 b udget plan, the Governor proposes a total reserve balance of nearly $ 16  b illion, including a discretionary deposit of $3. 5  b illion into the state ’s rainy day fund.
https://lao.ca.gov/Publications/Report/3769

The 2026-27 Budget: Overview of the Governor's Budget

Jan 12, 2026 - That said, recent budgets have set the SFEU bet ween $3.5  billion and $4.5  billion, so the Governor ’s budget proposal to set the balance to $4.5  billion is generally in line with recent policy.
https://lao.ca.gov/Publications/Report/5101