The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - The 2026-27 Budget: California's Fiscal Outlook Executive Summary Not Safe to Bet Artificial Intelligence ( AI) Fueled Exuberance Is Sustainable. Both the California and U.S. economies currently face significant headwinds.
https://lao.ca.gov/Publications/Report/5091

Federal Spending in California

Jan 18, 2017 - As shown in Figure 1, we categorize federal funding according to the three major channels through which they reach Californians. These channels are: (1) direct payments to individuals, private entities, and universities; (2) payments to the state government; and (3) payments to local governments.
https://lao.ca.gov/Publications/Report/3531/1

Federal COVID-19-Related Funding to California

Apr 28, 2020 - As shown in Figure  1, we categorize federal funding according to the two major channels through which they reach Californians. These channels are: Payments to Public Entities. Payments to governments and other public entities are shown on the right side of Figure  1.
https://lao.ca.gov/Publications/Report/4226

Elizabeth Hill Answers Questions On the LAO's Alternative Budget Plan - Elizabeth Hill Answers Questions on the LAO's Alternative Budget Plan [Video]

To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Elizabeth Hill Answers Questions on the LAO 's Alternative Budget Plan February 26, 2008 In an interview on the California Channel 's "California Conversations " Elizabeth Hill answers questions on  the state 's fiscal condition and the LAO 's alternative budget plan.
https://lao.ca.gov/Videos/Player?playlistId=26

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

New Inflation Poses Not So New Budget Risk

Dec 15, 2022 - First, what is the main channel through which high inflation affects the state’s budget condition? Second, how exposed is the state’s cost structure to the effects of high inflation? The broader concerns related to inflation also give rise to an important question from the opposite direction: Should the Legislature consider whether its policy choices will influence the level or direction of inflation in the economy?
https://lao.ca.gov/Publications/Report/4653

California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - As we described in our November Fiscal Outlook , the recent stronger-than-expected revenue trends are almost entirely explained by the personal income tax (PIT), which has seen double digit growth this year.
https://lao.ca.gov/Publications/Report/5104

The 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - However, about $4  billion of the budget problem results from new, discretionary General Fund spending in the budget package, as well as some budget actions adopted in a special session, which we describe in the box below.
https://lao.ca.gov/Publications/Report/5079

The 2025-26 Budget: Initial Comments on the Governor's May Revision

May 17, 2025 - Revenues for prior and current years are up a total of $6  billion, primarily reflecting stronger ‑than ‑expect personal income tax collections which are running $4  billion ahead of prior projections as of April.
https://lao.ca.gov/Publications/Report/5044

The 2025-26 Budget: Undertaking Fiscal Oversight

Feb 24, 2025 - Notably, this figure excludes special funds, which support a variety of other programs (some of which are of interest to the Legislature, like unemployment insurance and high-speed rail). We focus on General Fund here because it is the state ’s main operating account and faces significant fiscal pressure in coming years.
https://lao.ca.gov/Publications/Report/4983