The 2017-18 Budget: Initial Comments on the Governor’s May Revision

May 13, 2017 - The administration proposes making an additional payment of $6 billion to reduce the unfunded liability of CalPERS, the pension system for retired state employees. This payment would be funded by a loan from the state ’s portion of the Surplus Money Investment Fund, which is a part of the state ’s short-term savings account.
https://lao.ca.gov/Publications/Report/3669

The 2024-25 Budget: The Governor’s Proposition 98 Funding Maneuver

Feb 15, 2024 - In short: the unacknowledged $8  billion in cash disbursements in 2022 ‑23 create an outstanding “principal ” due from the state ’s cash resources. The state would make “repayments ” on this principle balance beginning in 2025 ‑26 as it acknowledges the cash disbursement on a budgetary basis.
https://lao.ca.gov/Publications/Report/4840

Update on State and School District Reserves

Apr 5, 2020 - This includes, for example, managing cash flow, addressing unexpected costs, and saving for large purchases. For example, regarding cash flow, while districts ’ largest expense —salaries —is paid relatively evenly throughout the school year, districts receive revenue on a more uneven schedule.
https://lao.ca.gov/Publications/Report/4216

The 2026-27 Budget: Fiscal Outlook for Schools and Community Colleges

Nov 19, 2025 - Whereas a deferral provides up ‑front state savings but creates future costs and weakens district cash flow, the advance payment is an up ‑front state cost that allows future savings and improves district cash flow.
https://lao.ca.gov/Publications/Report/5093

The 2026-27 Budget: Proposition 98 Guarantee and K-12 Spending Plan

Feb 4, 2026 - The state has multiple tools that can make school and community college programs more resilient against risk and volatility. The Proposition  98 reserve is particularly powerful because it (1)  can be accessed relatively quickly, (2)  can support any school or community college activities, and (3)  avoids disrupting district cash flow (unlike payment deferrals).
https://lao.ca.gov/Publications/Report/5110

The 2021-22 Budget: Initial Comments on the Governor’s May Revision

May 17, 2021 - Reflecting very strong cash collections in recent months, the May Revision adjusts 2020 ‑21 revenues (and transfers) up by $26.8  billion to $182  billion. This represents a 27  percent increase over 2019 ‑20, the largest single year increase in over four decades.
https://lao.ca.gov/Publications/Report/4432

The 2014-15 Budget: The Commission on Teacher Credentialing [Publication Details]

Mar 28, 2014 - Although the Governor's proposal to allow 60-day fund transfers among accounts would provide some cash relief, we recommend the Legislature instead consolidate CTC's revenues into a single, combined account.
https://lao.ca.gov/Publications/Detail/2987

State Budget Effects of Recent Federal Actions to Address COVID-19

Apr 5, 2020 - Finally, should benefit payments under the state’s base program exceed payroll tax collections, the legislation allows the state to take an interest-free loan (through the end of 2020) to continue making benefit payments.
https://lao.ca.gov/Publications/Report/4217

The 2023-24 Budget: Overview of the Governor's Budget

Jan 13, 2023 - The Governor ’s budget proposes making nearly one ‑third of all spending ‑related solutions subject to trigger restoration language. Under this proposed language, program spending that otherwise would have occurred in 2023 ‑24 would not be allocated as part of the June budget act.
https://lao.ca.gov/Publications/Report/4662

The 2025-26 Budget: Overview of the Governor's Budget

Jan 13, 2025 - The reason for the reduction is the recent voter approval of Proposition  35 (2024), which requires the state to spend less MCO tax money on offsetting General Fund spending and more money on provider rate increases.
https://lao.ca.gov/Publications/Report/4951