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 - Because the MCO tax package leverages federal Medicaid matching funds, the Governor ’s nonproposal in this area has the effect of leaving money on the table. Therefore, we think the Legislature should strongly consider extending the MCO tax package even in the absence of a proposal to do so from the Governor.
https://lao.ca.gov/Publications/Report/4003

The 2018-19 Budget: California Spending Plan (Final Version)

Oct 2, 2018 - Temporary housing assistance is available for up to 16 c onsecutive days each year. Payments are intended to serve as temporary assistance for families as they search for permanent housing. The daily rate was last increased in 2006 (from $ 40 p er day to $ 65 p er day).  
https://lao.ca.gov/Publications/Report/3870/7

The 2018-19 Budget: California Spending Plan (Final Version)

Oct 2, 2018 - About one ‑third of school districts currently offer part ‑day programs. Funds can be used to construct additional classrooms or renovate existing space. Funding is to be distributed by the State Allocation Board, with local matching requirements similar to those of the School Facilities Program (SFP).
https://lao.ca.gov/Publications/Report/3870/3

The 2017-18 Budget: California Spending Plan

Oct 18, 2017 - Report on Full ‑Day Kindergarten. Chapter  15 requires our office to submit a report by March  1, 2018 that includes options for incentivizing full ‑day kindergarten and differentiated funding rates for full ‑day and part ‑day kindergarten.
https://lao.ca.gov/Publications/Report/3694/3