The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - This is because constitutional spending requirements under Proposition  98 (1988) and Proposition  2 (2014) almost entirely offset revenue gains. Moreover, we estimate costs in other programs to be about $6  billion higher than anticipated.
https://lao.ca.gov/Publications/Report/5091

California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - After the dot-com bust and the Great Recession, it took four and five years, respectively, for revenues to recover. Incorporating revenue risk into the budget now, therefore, reflects prudence, not pessimism.
https://lao.ca.gov/Publications/Report/5104

The 2019-20 Budget: Proposition 98 Outlook

Nov 14, 2018 - Bottom Line for District Budgets School District Fiscal Health Is Relatively Good. The state ’s system of fiscal oversight requires county offices of education to review the financial condition of their school districts at various points during the year.
https://lao.ca.gov/Publications/Report/3897

The 2018-19 May Revision: LAO Economic Outlook

May 12, 2018 - The typical PE ratio since 1990 is 21 (19 if the dot-com bubble of the late 1990s and early 2000s is excluded). Similar to the price-to-earnings ratio, the home price-to-rent ratio is used to gauge if home prices are in line with underlying demand for housing.
https://lao.ca.gov/Publications/Report/3829

Building Reserves to Prepare for a Recession

Mar 7, 2018 - Proposition   98 Spending Generally Declines During a Recession. Proposition  98 (198 8) g overns most state funding for schools and community colleges. The measure establishes formulas for a minimum annual funding requirement, commonly referred to as the minimum guarantee.
https://lao.ca.gov/Publications/Report/3769

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

Jan 12, 2026 - Under two voter initiatives, the State Constitution requires the state to set aside a share of revenues for schools and community colleges (Proposition  98, 1988) and debt payments and reserve deposits (Proposition  2, 2014).
https://lao.ca.gov/Publications/Report/5101

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

May 17, 2025 - All Other Changes Improve Budget Bottom Line by $2   Billion. Across the rest of the budget, the administration estimates a net improvement of $2  billion to the General Fund bottom line. The  largest component is a $1.5  billion upward revision to the entering fund balance, primarily driven by higher ‑than ‑expected reversions of unspent funds and lower required Proposition  2 (2014) debt payments.
https://lao.ca.gov/Publications/Report/5044

The 2024-25 Budget: Multiyear Budget Outlook

May 23, 2024 - The dark line shows the administration ’s forecast of revenues in the May Revision. The light green line shows the amount of revenue the state would need to “break even ” —that is, the level of revenue the state would need to be able to afford the level of spending proposed in the May Revision.
https://lao.ca.gov/Publications/Report/4907

The 2024-25 Budget: California's Fiscal Outlook

Dec 7, 2023 - In the case of the Proposition 98 Reserve, reserve withdrawals are sometimes required, especially in tighter fiscal times. Proposition 2 This Year, Most Declines in BSA ‑Related Requirements Do Not Impact Budget ’s Bottom Line.
https://lao.ca.gov/Publications/Report/4819

The 2018-19 May Revision: LAO Multiyear State Budget Outlook

May 17, 2018 - Proposition  98 Requirements Lower by $1.4  Billion. Proposition  98 establishes an annual funding requirement for schools and community colleges known as the minimum guarantee. Across the three fiscal years, our estimates of General Fund spending required to meet the minimum guarantee are lower by $1.4  billion.
https://lao.ca.gov/Publications/Report/3843