The 2026-27 Budget: How to Use One-Time Revenue Improvements

Feb 20, 2026 - For example, we recommend the Legislature: Do Not Suspend the $3  Billion True Up Into the Budget Stabilization Account (BSA). The Governor ’s budget proposes suspending a roughly $3  billion true-up deposit that otherwise would be required in 2025-26.
https://lao.ca.gov/Publications/Report/5133

California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - To do this, we add a stock market indicator to our forecast models alongside other the economic variables. The added risk variable weighs on the range of revenue outcomes that we view as most plausible.
https://lao.ca.gov/Publications/Report/5104

The 2020-21 Budget: California's Spring Fiscal Outlook

May 8, 2020 - Appendix 1: How Do We Calculate the Budget Problem? This Appendix describes our calculation of the budget problem in more detail. Revenues and Other Resources Available Lower by $26   Billion to $39   Billion.
https://lao.ca.gov/Publications/Report/4228

The 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - When cost changes do not occur automatically under current policy, we classify them as either budget solutions or discretionary augmentations. Budget Package Addressed a Nearly $15   Billion Budget Problem.
https://lao.ca.gov/Publications/Report/5079

The 2023-24 Budget: Considering Inflation's Effects on State Programs

Nov 16, 2022 - We do not think that all —or even more —programs should have automatic adjustments or more statutory authority for administrative discretion. Doing so would reduce the Legislature ’s discretion over state spending.
https://lao.ca.gov/Publications/Report/4647

The 2021-22 Budget: CalWORKs Fiscal Outlook

Dec 8, 2020 - With this post we intend to provide information but do not include any explicit recommendations to the Legislature. Background CalWORKs Provides Cash Assistance and Employment Services to Low ‑Income Families.
https://lao.ca.gov/Publications/Report/4306

Rethinking California's Reserve Policy

Apr 10, 2025 - There are many options for doing this, but given the volatility in the state ’s revenues, we think it is important to set aside much more funds in years when revenues are surging , rather than setting aside somewhat more in every year.
https://lao.ca.gov/Publications/Report/5028

The 2020-21 Budget: Overview of the Governor's Budget

Jan 13, 2020 - Such an approach would provide districts with long ‑term relief that would make balancing their budgets easier to do on a sustained basis. Universities Governor Proposes Discretionary Base Increases for the Universities.
https://lao.ca.gov/Publications/Report/4135

The 2021-22 Spending Plan: Other Provisions

Sep 23, 2021 - Eligible businesses include those that organize, promote, produce, or host live concerts, comedy shows, sporting events, and theater productio ns. In addition, these businesses must show that their revenues declined by at least 70  percent following the onset of the pandemic.
https://lao.ca.gov/Publications/Report/4452

Cap-and-Trade Extension: Issues for Legislative Oversight

Dec 12, 2017 - A maximum allowance price that is designed to ensure that allowance prices do not exceed that level. If prices reach the hard ceiling, CARB would be able to sell an unlimited number of allowances at that price.
https://lao.ca.gov/Publications/Report/3719