California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - The added risk variable weighs on the range of revenue outcomes that we view as most plausible. The middle of the range, which becomes our main revenue forecast, is thus lower than if we did not include the stock market risk indicator.
https://lao.ca.gov/Publications/Report/5104

California’s Strong Revenue Trends Mask Looming Budget Risk [Publication Details]

Jan 23, 2026 - In this installment of Fiscal Perspectives, the Legislative Analyst describes how the LAO’s revenue estimates represent a hedge against downside stock market risk and why—despite current cash trends—caution matters given the state’s large, ongoing structural deficit.
https://lao.ca.gov/Publications/Detail/5104

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

Jan 12, 2026 - Budget Solutions Budget solutions are proposals that create more budget capacity. Taken together, the budget solutions in the Governor ’s budget result in an improvement in the budget ’s bottom line by $9  billion.
https://lao.ca.gov/Publications/Report/5101