The 2026-27 Budget: How to Use One-Time Revenue Improvements

Feb 20, 2026 - Our recent revenue post suggests an improvement in revenues of around $5 billion relative to the Governor’s budget estimates. Under the state’s constitutional budget formulas, a revenue increase of this magnitude would translate, very roughly, into a $2.5 billion improvement in the budget bottom line.
https://lao.ca.gov/Publications/Report/5133

The 2026-27 Budget: How to Use One-Time Revenue Improvements [Publication Details]

Feb 20, 2026 - The 2026-27 Budget: How to Use One-Time Revenue Improvements [Publication Details] Translate Our Website This Google ™ translation feature provided on the Legislative Analyst's Office (LAO) website is for informational purposes only.
https://lao.ca.gov/Publications/Detail/5133

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

Jan 12, 2026 - This increases the administration’s estimate of the deficit relative to our forecast, partially offsetting some of the revenue improvement. Even With $42   Billion Revenue Improvement, Budget Only Roughly Balanced.
https://lao.ca.gov/Publications/Report/5101

California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - These firms have invested heavily in building out data centers and on extraordinary pay packages for their key employees. This spending, along with gains to investors, has turbo-charged state income tax receipts.
https://lao.ca.gov/Publications/Report/5104