An Update on California’s Cash Management Situation

Aug 31, 2020 - Cash deficits and surpluses arise due to the unequal distribution of disbursements and receipts throughout the fiscal year. The state disburses money fairly evenly throughout the fiscal year. For example, the state typically transfers funds to school and community college districts, makes payments to Medi-Cal providers, and issues payroll to state employees every month of the year.
https://lao.ca.gov/Publications/Report/4266

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

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

The 2019-20 Budget: Undoing California’s Outstanding Budgetary Deferrals

Mar 26, 2019 - Depositing Money Into Reserves Generates Interest Payments. Money held in the state ’s cash reserves is not idle. The State Treasurer ’s Office (STO) invests state funds, including reserves, in the Pooled Money Investment Account (PMIA), generating an investment return.
https://lao.ca.gov/Publications/Report/3988

The 2018-19 Budget: Repaying the CalPERS Borrowing Plan

Apr 4, 2018 - The state also makes loans from the General Fund to special funds —for example, to support the establishment of a new program —and between special funds. Funds ’ Cash Held Together in PMIA. The funds described above all are separate in a budgetary sense, but not on a cash basis.
https://lao.ca.gov/Publications/Report/3797

The 2019-20 Budget: Structuring the Budget: Reserves, Debt and Liabilities

Feb 5, 2019 - State ’s Budget Position and Cash Position Differ. The state budget process aligns General Fund revenues with expenditures on an annual basis. This budgetary position is different than the General Fund ’s cash position —a daily or point ‑in ‑time estimate of whether the fund has sufficient cash on hand to make expenditures.
https://lao.ca.gov/Publications/Report/3925

The Quiet Transformation in California’s Cash Management

Aug 29, 2019 - The Advantages of Self-Sufficient Cash Flow Management The structural misalignment between California ’s receipts and disbursements make its cash management activities a crucial, albeit behind-the-scenes, aspect of government operations.
https://lao.ca.gov/Publications/Report/4091

The 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - However, on a cash basis, these costs would still be paid in 2025‑26 as they are incurred. Like other budget maneuvers, this creates a misalignment between the state’s cash position and its budgetary costs.
https://lao.ca.gov/Publications/Report/5079

The 2017-18 Budget: California Spending Plan

Oct 18, 2017 - To make this payment, the budget uses a loan from the state ’s cash balances in the Pooled Money Investment Account (PMIA), which is essentially the state ’s checking account. The budget also makes an initial repayment of $146  million toward the loan, which is counted toward annual required debt payments under Proposition  2 (2014).
https://lao.ca.gov/Publications/Report/3694/1

Managing California’s Cash

Sep 3, 2019 - Nonetheless, in evaluating a future loan, the Legislature must make a judgment about the likelihood that a recession will occur while the loan is still outstanding. Dependability of Repayments. Another key consideration for the Legislature in making future cash loans is the degree of certainty with which the loan will be repaid.
https://lao.ca.gov/Publications/Report/4092