California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - Subscribe | California State Legislature | Online Voter Registration | Privacy Policy | Accessibility Legislative Analyst's Office | The California Legislature's Nonpartisan Fiscal and Policy Advisor 925 L Street, Suite 1000 Sacramento, CA 95814 | (916) 445-4656
https://lao.ca.gov/Publications/Report/5104

The 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - In addition to this report, we will release a series of issue ‑specific, online posts that give more detail on the major actions in the budget package. The Budget Problem For the third year in a row, the state faced a budget problem, or deficit.
https://lao.ca.gov/Publications/Report/5079

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

The 2026-27 Budget: Overview of the Governor's Budget

Jan 12, 2026 - Although the settle‑up proposal responds to revenue risk in the current year, downside risk to revenues is likely greater in 2026‑27 than it is in 2025‑26. Suspends BSA True ‑Up Deposit for 2025 ‑26.
https://lao.ca.gov/Publications/Report/5101

The 2025-26 Budget: Initial Comments on the Governor's May Revision

May 17, 2025 - Online Appendices 1 and 2 provide a complete list of solutions by program area. Spending‑Related Solutions Reductions. Under our definition, a spending reduction occurs when the Governor proposes spending less than what is required under current law or policy —more commonly referred to as a spending cut.
https://lao.ca.gov/Publications/Report/5044

Fiscal Outlook Supplement on Proposition 2

Nov 16, 2016 - Subscribe | California State Legislature | Online Voter Registration | Privacy Policy | Accessibility Legislative Analyst's Office | The California Legislature's Nonpartisan Fiscal and Policy Advisor 925 L Street, Suite 1000 Sacramento, CA 95814 | (916) 445-4656
https://lao.ca.gov/Publications/Report/3508

State Funding Actions Related to COVID-19

Apr 20, 2020 - We plan to update this post periodically to reflect new information and actions, but for the most up-to-date information, visit: http://www.dof.ca.gov . State Actions to Allocate Funding to COVID-19 Response.
https://lao.ca.gov/Publications/Report/4223

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

Jan 13, 2025 - Any level above zero is up to the discretion of the Legislature. Recent budgets have set the SFEU between $3.5  billion and $4  billion. The Governor proposes a $4.5  billion SFEU balance for the end of 2025 ‑26.
https://lao.ca.gov/Publications/Report/4951

Fiscal Outlook: In-Home Supportive Services (IHSS)

Nov 15, 2017 - Pursuant to state legislation, beginning on July 1, 2018 IHSS providers will be eligible to earn up to 8  hours annually of paid sick leave, ramping up to 24  hours annually when the minimum wage is increased to $15 per hour (scheduled for January  1, 2022).
https://lao.ca.gov/Publications/Report/3712

The 2017-18 Budget: California Spending Plan

Oct 18, 2017 - Online Educational Resources. The budget provides $3  million ongoing Proposition  98 funding for the State Librarian to make online educational resources publicly available. The budget provides the funding to Riverside COE to spend upon the direction of the State Librarian.
https://lao.ca.gov/Publications/Report/3694/3