California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - After the dot-com bust and the Great Recession, it took four and five years, respectively, for revenues to recover. Incorporating revenue risk into the budget now, therefore, reflects prudence, not pessimism.
https://lao.ca.gov/Publications/Report/5104

California's Fiscal Outlook: The 2010-11 Budget [Publication Details]

Nov 18, 2009 - Addressing this large shortfall will require painful choices—on top of the difficult choices the Legislature made earlier this year. Reports by Policy Area
https://lao.ca.gov/Publications/Detail/2143

Addressing California's Key Liabilities [Publication Details]

May 7, 2014 - Due to its massive unfunded liability and relatively high growth rate, we recommend that the Legislature make a full funding plan for the California State Teachers' Retirement System a top priority in addressing the state's key liabilities.
https://lao.ca.gov/Publications/Detail/3011

The 2021-22 Budget: California's Fiscal Outlook

Nov 18, 2020 - A new statutory requirement to provide supplemental payments on top of the minimum level makes even more funding available for schools and community colleges but contributes to the state ’s operating deficit.
https://lao.ca.gov/Publications/Report/4297

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - For California, the dot ‑com era —when stocks rose and then fell precipitously in response to widespread adoption of the internet —offers the most salient example. The internet has proven to be a transformative technology and, yet, the stock market ’s initial reaction was clearly overly exuberant.
https://lao.ca.gov/Publications/Report/5091

Federal Spending in California

Jan 18, 2017 - The top five recipient counties are: Los Angeles (with $81 billion in federal expenditures), San Diego ($37 billion), Orange ($21 billion), Santa Clara ($19 billion), and Sacramento ($15 billion). Per Capita Federal Expenditures by County.
https://lao.ca.gov/Publications/Report/3531/6

LAO Multiyear State Budget Outlook

May 19, 2017 - The top part of each bar shows our projection of the annual Budget Stabilization Account (BSA) deposit. The bottom part of each bar shows the annual operating surplus (the amount by which projected revenues exceed expenditures).
https://lao.ca.gov/Publications/Report/3675

The 2021-22 Budget: Initial Comments on the Governor’s May Revision

May 17, 2021 - (We also include links to Appendix tables at the end of this post and the top left of this page. These appendix tables itemize select proposals by policy area based on our understanding at this time.)
https://lao.ca.gov/Publications/Report/4432

Rethinking California's Reserve Policy

Apr 10, 2025 - In March of 2004, on the heels of the dot ‑com bust, voters passed Proposition  58, which created the Budget Stabilization Account (BSA). In the 2006 ‑07 budget, the Legislature deposited $472  million into the BSA and in 2007 ‑08 deposited $1.5  billion.
https://lao.ca.gov/Publications/Report/5028

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

Jan 13, 2024 - (The Legislature also can withdraw the entire “discretionary” balance of the BSA at any time, which are amounts that were deposited into the fund on top of Proposition 2 requirements.) The Governor proposes withdrawing half of the BSA’s constitutional balance, $10.2 billion, and the entire discretionary balance, $1.8 billion.
https://lao.ca.gov/Publications/Report/4825