The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - The 2026-27 Budget: California's Fiscal Outlook Executive Summary Not Safe to Bet Artificial Intelligence ( AI) Fueled Exuberance Is Sustainable. Both the California and U.S. economies currently face significant headwinds.
https://lao.ca.gov/Publications/Report/5091

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

Jan 12, 2026 - That said, recent budgets have set the SFEU bet ween $3.5  billion and $4.5  billion, so the Governor ’s budget proposal to set the balance to $4.5  billion is generally in line with recent policy.
https://lao.ca.gov/Publications/Report/5101

The 2025-26 Budget: California's Fiscal Outlook

Nov 20, 2024 - One path is falling interest rates and expansion of money available for lending and investment. A key driver of California ’s economic slump over the last two years has been the Federal Reserve ’s efforts to tamp down inflation by raising interest rates and shrinking how much money is available for lending and investment.
https://lao.ca.gov/Publications/Report/4939

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

Jan 13, 2025 - The reason for the reduction is the recent voter approval of Proposition  35 (2024), which requires the state to spend less MCO tax money on offsetting General Fund spending and more money on provider rate increases.
https://lao.ca.gov/Publications/Report/4951

The 2018-19 Budget: Repaying the CalPERS Borrowing Plan

Apr 4, 2018 - By assuming less money comes into the system through investment gains, the state will be required to contribute more money to pay for current and future pension costs as well as a larger unfunded liability.
https://lao.ca.gov/Publications/Report/3797

The 2019-20 Budget: California Spending Plan—Debt Liabilities

Oct 17, 2019 - Chapter  33 appropriates additional General Fund money in 2019 ‑20 through 2022 ‑23 as a supplemental payment to the state ’s unfunded liabilities at CalSTRS (these payments are counted toward the state ’s Proposition  2 debt payment requirements).
https://lao.ca.gov/Publications/Report/4106

The 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - How the Spending Plan Addresses the Budget Problem The state has several types of solutions —or options —for addressing a budget problem, but the most important include: reserve withdrawals, spending reductions, revenue increases, and borrowing (for example, loaning money from other funds to the General Fund).
https://lao.ca.gov/Publications/Report/5079

The 2019-20 Budget: Structuring the Budget: Reserves, Debt and Liabilities

Feb 5, 2019 - In this case, the state transfers additional funds to a pension system to reduce costs over the long ‑term, saving money on an ongoing basis. Paying down debts has one benefit of reserves (it addresses future spending obligations, thereby reducing the size of a future budget problem), but not the other benefit of reserves (holding money available to spend on programs in the future).
https://lao.ca.gov/Publications/Report/3925

The 2019-20 Budget: Undoing California’s Outstanding Budgetary Deferrals

Mar 26, 2019 - Depositing Money Into Reserves Generates Interest Payments. Money held in the state ’s cash reserves is not idle. The State Treasurer ’s Office (STO) invests state funds, including reserves, in the Pooled Money Investment Account (PMIA), generating an investment return.
https://lao.ca.gov/Publications/Report/3988

The 2017-18 Budget: California Spending Plan

Oct 18, 2017 - It excludes money from the federal government and from bond issuances.) Mode: General Fund General Fund + Special Funds       The drop-down menu allows the user to switch between two views —General Fund and General Fund + Special Funds.
https://lao.ca.gov/Publications/Report/3694/13