California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - Were the markets to drop considerably, budget problems would be tens of billions of dollars larger, necessitating even deeper cuts and/or tax increases. These challenges would not be short-lived either.
https://lao.ca.gov/Publications/Report/5104

The 2026-27 Budget: California State University

Feb 24, 2026 - Eliminating these out ‑year augmentations would reduce projected state deficits in 2027 ‑28 and 2028 ‑29 without requiring programmatic cuts or tax increases. Rather than making commitments in advance, the Legislature could determine each year how much support it can afford to provide CSU in light of overall fiscal conditions and competing budget priorities.
https://lao.ca.gov/Publications/Report/5142

The 2026-27 Budget: University of California

Feb 26, 2026 - Eliminating these out ‑year augmentations would reduce projected state deficits in 2027 ‑28 and 2028 ‑29 without requiring programmatic cuts or tax increases. Rather than making commitments in advance, the Legislature could determine each year how much ongoing support it can afford to provide UC in light of overall fiscal conditions and competing budget priorities.
https://lao.ca.gov/Publications/Report/5143

The 2026-27 Budget: Higher Education Overview

Feb 5, 2026 - Despite projecting a $27  billion deficit in 2027 ‑28, the administration has only the one proposal to reduce higher education spending —cutting MCS award coverage in half. In contrast to the Cal Grant program, MCS does not require students to meet financial need criteria.
https://lao.ca.gov/Publications/Report/5112

The 2026-27 Budget: Framework for Approaching the Natural Resources, Environmental Protection, and Agriculture Budget

Feb 10, 2026 - Eliminating planned one ‑time spending generally is less disruptive than cutting support for base, ongoing programs. However, nearly all of this one ‑time funding has now been spent or committed to specific projects and thus cannot easily be pulled back.
https://lao.ca.gov/Publications/Report/5116