California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - This differs from the approach taken by the Governor. While the Governor ’s budget describes the financial markets as a leading risk to the budget and assumes that stock market appreciation slows, it does not explicitly factor the risk of a market downturn into its revenue estimates.
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

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: County Administration and H.R. 1 Implementation

Mar 5, 2026 - To try to address this, the Legislature has taken steps to require that the administrative budgeting methodologies for both CalFresh and IHSS are reevaluated every three years, with a report to the Legislature on potential changes.
https://lao.ca.gov/Publications/Report/5149

The 2026-27 Budget: Estimated State Savings From Proposition 47

Feb 23, 2026 - Previously, some of these crimes could be punished as felonies depending on the type of property taken or if the defendant had certain previous theft-related convictions. The measure limited these reduced penalties to people who have not committed certain severe crimes, such as murder, and are not re quired to register as sex offenders.
https://lao.ca.gov/Publications/Report/5108

The 2026-27 Budget: In-Home Supportive Services

Mar 18, 2026 - Because nonfederal IHSS costs have grown faster than the MOE in recent years, the state has taken on an increasing share of IHSS program costs. Governor ’s Budget Includes Three IHSS Budget Solutions.
https://lao.ca.gov/Publications/Report/5166

The 2026-27 Budget: Bureau for Private Postsecondary Education

Mar 25, 2026 - As a result of BPPE ’s structural deficit, the state has taken several actions to keep the BPPE Fund solvent in recent years. Most notably, in 2021-22, DCA issued a $12  million loan to the BPPE Fund from the Bureau of Automotive Repair ’s Vehicle Inspection and Repair Fund.
https://lao.ca.gov/Publications/Report/5169

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

Jan 12, 2026 - Taken together, the budget solutions in the Governor ’s budget result in an improvement in the budget ’s bottom line by $9  billion. Ongoing, the Governor ’s spending ‑related solutions provide $5  billion in savings within a few years.
https://lao.ca.gov/Publications/Report/5101

The 2026-27 Budget: Contract to Achieve Operational Efficiencies

Mar 10, 2026 - As such, the Legislature might not become aware of an action taken by the administration that is inconsistent with legislative priorities until after the action has been taken. In addition, the Legislature would not necessarily be informed in a timely manner if the work falls behind schedule or savings erode further from what is estimated at the May Revision.
https://lao.ca.gov/Publications/Report/5156