The 2026-27 Budget: Overview of the Spending Plan

Aug 26, 2026 - Supports County and State Implementation of New Eligibility Rules. On the other hand, the spending plan also adds new spending to implement H.R. 1 ’s requirements, particularly related to new requirements to maintain enrollment.
https://lao.ca.gov/Publications/Report/5197

Understanding The State’s Astonishing Cash Position

Sep 16, 2026 - Under the new structure, counties deposit their share of Medi ‑Cal behavioral health costs into the fund; the state forwards that amount to the federal government; and federal reimbursement flows back to counties.
https://lao.ca.gov/Publications/Report/5198

The 2026-27 Budget: Overview of the Spending Plan

Aug 26, 2026 - CDCR = California Department of Corrections and Rehabilitation; FTB = Franchise Tax Board; UIS = unsatisfactory immigration status; Preschool = State Preschool; CDCR = California Department of Corrections and Rehabilitation; DOJ = Department of Justice; and IHSS = In ‑Home Supportive Services.
https://lao.ca.gov/Publications/Report/5197/2

Understanding $100 Billion in Spending Growth: Causes and Fiscal Implications

Apr 28, 2026 - State costs for county administration of IHSS have increased over this period, although counties do not receive a COLA from the state. Overall, nearly all cost growth in IHSS reflects sustaining services.
https://lao.ca.gov/Publications/Report/5176

The 2026-27 Budget: Initial Comments on the Governor's May Revision

May 18, 2026 - APS = Adult Protective Services; CDTFA = California Department of Tax and Fee Administration; CSAC = California Student Aid Commission; DOJ  =  Department of Justice; HBEX = California Health Benefit Exchange; HCD = Department of Housing and Community Development; IHSS = In ‑Home Supportive Services; and UIS = unsatisfactory immigration status Appendix 2, Figure 3 General Fund Spending Solutions (Reversions) Proposed in the 2026 ‑27 May Revision (In Millions)
https://lao.ca.gov/Publications/Report/5187/2

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

Feb 20, 2026 - The 2026-27 Budget: How to Use One-Time Revenue Improvements The 2026-27 Budget How to Use One-Time Revenue Improvements Recent stock market performance continues to boost income tax collections. In our Fiscal Outlook , we strongly advised the Legislature to treat near-term strength in tax collections as temporary because we expect these gains to reverse.
https://lao.ca.gov/Publications/Report/5133

California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - As we described in our November Fiscal Outlook , the recent stronger-than-expected revenue trends are almost entirely explained by the personal income tax (PIT), which has seen double digit growth this year.
https://lao.ca.gov/Publications/Report/5104

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - Consistent with these trends, collections from the sales tax and corporation tax (adjusted for recent policy changes) have posted below ‑average growth in recent months. Income Tax, Fueled by Exuberance Over Artificial Intelligence (AI), Remains Lone Bright Spot.
https://lao.ca.gov/Publications/Report/5091

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

Jan 12, 2026 - Should a stock market downturn occur, income tax revenues would fall considerably. These risks are severe enough that not incorporating them into this year ’s budget, as the Governor proposes, would put the state on precarious footing.
https://lao.ca.gov/Publications/Report/5101

The 2026-27 Budget: How to Use One-Time Revenue Improvements [Publication Details]

Feb 20, 2026 - Recent stock market performance continues to boost income tax collections. In our Fiscal Outlook, we strongly advised the Legislature to treat near-term strength in tax collections as temporary because we expect these gains to reverse. Further, the state faces significant structural deficits in the future.
https://lao.ca.gov/Publications/Detail/5133