California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - California’s Strong Revenue Trends Mask Looming Budget Risk January 23, 2026 Tweet Gabriel PetekLegislative Analyst History suggests that fiscal risks can build during times when they are easiest to ignore.
https://lao.ca.gov/Publications/Report/5104

How Have Past Stock Market Downturns Affected Income Tax Revenue? [EconTax Blog]

Mar 9, 2026 - By most measures, the global financial crisis was more severe than the dot-com crash. The state 's unemployment rate, for example, peaked at 7 percent following the dot-com crash but reached nearly double that during the financial crisis and remained elevated for much longer.
https://lao.ca.gov/LAOEconTax/article/Detail/852

How Have Past Stock Market Downturns Affected Income Tax Revenue? [EconTax Blog]

Mar 9, 2026 - By most measures, the global financial crisis was more severe than the dot-com crash. The state 's unemployment rate, for example, peaked at 7 percent following the dot-com crash but reached nearly double that during the financial crisis and remained elevated for much longer.
https://lao.ca.gov/LAOEconTax/Article/Detail/852

The 2026-27 Budget: California State University

Feb 24, 2026 - It also would provide CSU with its remaining 3  percent ongoing base increase ($151  million) associated with the 2025 ‑26 compact payment in  2028 ‑29. CSU Anticipates Receiving Additional Tuition Revenue in 2026 ‑27.
https://lao.ca.gov/Publications/Report/5142

Oversight of certain public benefit artificial intelligence (AI) companies. [Ballot]

Jan 20, 2026 - The measure would have the following major fiscal effects: Increased state costs that would likely be in the tens of millions of dollars annually to establish and operate a new regulatory commission overseeing certain public benefit AI com panies.
https://lao.ca.gov/BallotAnalysis/Initiative/2025-033

The 2026-27 Budget: Judicial Branch

Feb 11, 2026 - This is less than the $106  million the trial courts could have retained under the current 3  percent cap. Background Judicial Branch Has Extensive Facility Needs. The judicial branch currently manages around 430 facilities across all 58 counties.
https://lao.ca.gov/Publications/Report/5113

The 2026-27 Budget: Supplemental Security Income/State Supplementary Payment (SSI/SSP) Program

Mar 3, 2026 - As shown in Figure  3, the Governor ’s budget projects that caseload will decrease by 0.9  percent in both 2025-26 and 2026-27. In past years, the Department of Social Services (DSS) has noted that a potential driver of this steady caseload decline may be fewer individuals meeting income and asset eligibility thresholds.
https://lao.ca.gov/Publications/Report/5148

The 2026-27 Budget: California Community Colleges

Mar 5, 2026 - As Figure  3 shows, salaries and benefits (including retirement benefits, health care benefits, workers ’ compensation, and unemployment insurance) accounted for more than 80  percent of district spending in 2024 ‑25.
https://lao.ca.gov/Publications/Report/5150

The 2026-27 Budget: Child Welfare

Mar 3, 2026 - Center for Excellence $750,000 ongoing beginning in 2022 ‑23. Emergency Response Augmentation $50 million one ‑time in 2021 ‑22 and again in 2022 ‑23, expendable for four years (through June 30, 2026 for the later allocation).
https://lao.ca.gov/publications/report/5147

The 2026-27 Budget: Re-Envisioning State Education Governance

Mar 18, 2026 - Introduction California operates the nation ’s largest public school system, comprising 937 school districts, 1,257 charter schools, and 58 county offices of education. This year, these local agencies will educate nearly 5.8  million students, employ around 700,000 teachers and staff, and spend nearly $150  billion.
https://lao.ca.gov/Publications/Report/5165