California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - Given that this deficit is estimated to range from $20  billion to $35  billion in the years ahead, addressing it gradually, rather than all at once, reduces fiscal disruption and more readily provides for legislative input and flexibility.
https://lao.ca.gov/Publications/Report/5104

The 2019-20 Budget: Overview of the Governor's Budget

Jan 14, 2019 - Other major proposals include $ 51  m illion (mostly General Fund) to modernize the 9 ‑1 ‑1 system, $ 20  m illion (General Fund) for public infrastructure and local emergency response costs through the California Disaster Assistance Act, and $ 16  m illion (General Fund) to continue the implementation of the state ’s Earthquake Early Warning System. $31   Million to Backfill Property Taxes for Local Governments Affected by Recent Wildfires.
https://lao.ca.gov/Publications/Report/3916

The 2019-20 Budget: California's Fiscal Outlook

Nov 14, 2018 - As a result of the dot ‑com bust and ensuing recession in 2001, state revenues declined precipitously. The very next year, looking to budget year 2002 ‑03, our Fiscal Outlook found the state ’s surplus had disappeared, and instead, the budget faced a deficit of $12. 4  b illion for the upcoming year.
https://lao.ca.gov/Publications/Report/3896

The 2019-20 Budget: California Spending Plan (Final Version)

Oct 17, 2019 - The total Proposition  2 debt payment requirement was $2. 2  b illion in the 2019 ‑ 20 b udget package. In addition, the spending plan dedicates an additional $9. 1  b illion to repay state debts on a discretionary basis (Figure  9).
https://lao.ca.gov/Publications/Report/4083

The 2026-27 Budget [Publication Details]

Jan 1, 2026 - The 2026-27 Budget [Publication Details] Translate Our Website This Google ™ translation feature provided on the Legislative Analyst's Office (LAO) website is for informational purposes only. The LAO is unable to guarantee the accuracy of this translation and is therefore not liable for any inaccurate information resulting from the translation application tool.
https://lao.ca.gov/Publications/Detail/5107

The 2023-24 Budget: Multiyear Assessment

Feb 15, 2023 - Under those projections, the state faces operating deficits of $9 billion in 2024‑25, $9 billion in 2025‑26, and $4 billion in 2026‑27. Because of the state’s constitutional spending requirements, revenues would need to be higher by more than these amounts for the state to be able to afford the spending level currently proposed.
https://lao.ca.gov/Publications/Report/4687

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

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

Jan 12, 2026 - Both our office and the administration expect the state to face multiyear deficits, with estimates ranging from $20  billion to $35  billion annually. These deficits are concerning for three reasons.
https://lao.ca.gov/Publications/Report/5101

Supplemental Report of the 2019-20 Budget Act [Publication Details]

Aug 2, 2019 - Supplemental Report of the 2019-20 Budget Act [Publication Details] Translate Our Website This Google ™ translation feature provided on the Legislative Analyst's Office (LAO) website is for informational purposes only.
https://lao.ca.gov/Publications/Detail/4084

Whether or Not to Tap Reserves to Solve Estimated Budget Problem Emerges as Key Fiscal Decision Facing California’s Legislature

Apr 19, 2023 - Other downturns, such as the 2001 so-called dot-com recession, had severe fiscal implications while inflicting somewhat milder economic damage. The 2008 Great Recession had brutal effects on both the state ’s economy and budget.
https://lao.ca.gov/Publications/Report/4762