Rethinking California's Reserve Policy

Apr 10, 2025 - According to this measure, California has one of the most volatile tax revenue systems in the country, ranking fifth out of 50 states. However, using data from the Fiscal Survey of States put together by the National Association of State Budget Officers, California ’s rainy day fund balances are somewhat below average.
https://lao.ca.gov/Publications/Report/5028

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - This year, for example, our outlook reflects our best estimates of the effects of H.R. 1: One Big Beautiful Bill Act on the state budget but does not make assumptions about future federal policy changes.
https://lao.ca.gov/Publications/Report/5091

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 - A majority of the difference lies in the distinction between the ongoing and one-time components of the surplus. The former is an annual amount that allows lawmakers to make recurring expenses, while the latter is available in one year to be spent or saved.
https://lao.ca.gov/Publications/Report/4122

Building Reserves to Prepare for a Recession

Mar 7, 2018 - These include options outside of the rainy day fund, as well as other budgetary tools that have the same key attributes of reserves. Relative to what the Governor now proposes, using one of these alternatives would help make the state even better prepared for a coming recession.
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

An Extraordinary Moment in California's Fiscal History

Apr 11, 2019 - We also recommend rejecting the Governor ’s proposed $750  million in grants to school districts for the conversion of part-day kindergarten programs to full-day programs. A similarly structured, though smaller, $100  million grant program from 2018-19 is instructive.
https://lao.ca.gov/Publications/Report/4003

The 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - Importantly, these budget solutions also included a planned withdrawal from the state ’s rainy ‑day fund, the Budget Stabilization Account (BSA), of $7.1  billion. The June 2025 spending plan maintains these actions, including the reserve withdrawal.
https://lao.ca.gov/Publications/Report/5079

The 2025-26 Budget: California's Fiscal Outlook

Nov 20, 2024 - These choices included about $11  billion in spending ‑related solutions and $15  billion in all other solutions, including $5.5  billion in temporary revenue increases and a $7  billion withdrawal from the state ’s rainy ‑day fund .
https://lao.ca.gov/Publications/Report/4939

The 2016-17 Budget: California Spending Plan

Oct 5, 2016 - The new rate for a full –day , center –based State Preschool slot is $10,596 per year, whereas the new rate for a full –day , center –based General Child Care slot for a preschool –aged child is $10,530 per year.
https://lao.ca.gov/Publications/Report/3487/4