Rethinking California's Reserve Policy

Apr 10, 2025 - Due to complex interactions, those formulas inconsistently reduce the excess capital gains directed to Proposition  2. As shown in Figure  13 , since Proposition  2 was passed, excess capital gains to Proposition  2 have been reduced between 0  percent to 30  percent each year (larger increments are also possible, if not likely, in the future).
https://lao.ca.gov/Publications/Report/5028

The 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - Like other budget maneuvers, this creates a misalignment between the state’s cash position and its budgetary costs. Notably, this cost shift is intended to continue on an ongoing basis—meaning costs incurred in 2026‑27 would be recognized in 2027‑28, and so on.
https://lao.ca.gov/Publications/Report/5079

The 2025-26 Budget: Undertaking Fiscal Oversight

Feb 24, 2025 - However, these hearings also present the opportunity for the Legislature to step back and evaluate whether programs are functioning as intended. Specifically, the Legislature can assess whether programs are providing adequate benefits given the costs.
https://lao.ca.gov/Publications/Report/4983

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

Jan 13, 2025 - 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