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 Definition of Qualified Capital Outlay for the State Appropriations Limit

Feb 18, 2022 - There are also some properties that appear to meet the de finition, although perhaps less clearly, like information technology projects. Does the State Need to Own the Asset to Count It as an Exclusion?
https://lao.ca.gov/Publications/Report/4547

The 2024-25 Budget: Initial Comments on the Governor’s May Revision

May 17, 2024 - The state meets this requirement through a combination of General Fund spending and local property tax revenue. When General Fund revenue declines, the minimum requirement usually declines in tandem.
https://lao.ca.gov/Publications/Report/4902

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

Rethinking California's Reserve Policy

Apr 10, 2025 - In addition, school and community college districts themselves hold local reserves to manage unexpected cost increases, as well as state funding declines. Finally, the state has used other tools like deferrals, which uses a principle similar to borrowing to help smooth school spending through downturns.
https://lao.ca.gov/Publications/Report/5028

The 2022-23 Budget: State Appropriations Limit Implications

Mar 30, 2022 - Under the Constitution and statute, subventions—funding provided to local governments on an unrestricted basis—meet SAL requirements and are counted, instead, at the local level. The state could amend the definition of subvention in order to count more funding provided at the local level.
https://lao.ca.gov/Publications/Report/4583

The 2024-25 Budget: Overview of the Governor's Budget

Jan 13, 2024 - Because state departments and local agencies will already be well underway in planning, financing, and beginning to implement these projects, not providing this funding in future years would cause disruptions.
https://lao.ca.gov/Publications/Report/4825

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - Second, while our revenue estimates hedge against a market downturn, they do not reflect the revenue declines the state would experience in a recession. Third, the state has used most of its budget resiliency tools to address prior deficits.
https://lao.ca.gov/Publications/Report/5091

The 2016-17 Budget: California Spending Plan

Oct 5, 2016 - Chapter  547 of 2015 (SB  350, de  Le ón) expanded the state ’s renewable portfolio standard from 33  percent by 2020 to 50  percent by 2030 and established a state goal of doubling the amount of energy efficiency savings by 2030.
https://lao.ca.gov/Publications/Report/3487/8