The 2026-27 Budget: Community College Facilities

Mar 17, 2026 - As Figure  2 shows, the Governor proposes to fund all ten projects selected by the Chancellor ’s Office. The Governor ’s budget includes $28  million Proposition  2 bond funds for the preliminary plans and working drawings phases of these projects.
https://lao.ca.gov/Publications/Report/5159

The 2026-27 Budget: Community College Facilities [Publication Details]

Mar 17, 2026 - This post assesses the Governor’s proposals to fund the second batch of community college capital outlay projects under Proposition 2, an education facilities bond.
https://lao.ca.gov/Publications/Detail/5159

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

Mar 9, 2026 - The four major downturns were more severe, with income tax declines ranging from 17 percent to 30 percent (average of 24 percent). Perhaps more concerning, income tax revenues stayed depressed for years following major downturns.
https://lao.ca.gov/LAOEconTax/Article/Detail/852

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

Mar 9, 2026 - The four major downturns were more severe, with income tax declines ranging from 17 percent to 30 percent (average of 24 percent). Perhaps more concerning, income tax revenues stayed depressed for years following major downturns.
https://lao.ca.gov/LAOEconTax/article/Detail/852

California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - Throughout the mid-to-late 1990s, the stock market boomed over optimism around the Internet and dot-com start-ups. Strong tax revenue trends from this boom generated large budget surpluses that ultimately gave way to serious deficits once the bubble burst and PIT revenues declined nearly 30  percent.
https://lao.ca.gov/Publications/Report/5104

The 2026-27 Budget: Child Welfare

Mar 3, 2026 - Additional $81 million one ‑time provided in 2025 ‑26, available through June 30, 2028. a We note that we are currently seeking clarification from the administration on two components of BH ‑CONNECT that are funded in the Department of Health Care Services —(1) the Activity Funds Initiative (previously called activity stipends) and (2) Initial Joint Behavioral Health Home Visits.
https://lao.ca.gov/publications/report/5147

The 2026-27 Budget: In-Home Supportive Services

Mar 18, 2026 - These include (1)  a proposal to eliminate the IHSS Permanent Back ‑Up Provider Program (estimated to save $3.5  million in 2026 ‑27 and on ‑going), (2)  a proposal to align IHSS eligibility time lines with Medi ‑Cal (estimated to save $86  million in 2026 ‑27 and on ‑going), and (3)  a proposal to remove the state ’s share of cost associated with any growth in IHSS hours per
https://lao.ca.gov/Publications/Report/5166

The 2026-27 Budget: Streamlining California’s Affordable Housing Funding System

Mar 6, 2026 - The Governor ’s proposal to provide 70   percent of total AHSC funds for affordable housing (and 30   percent for the transportation aspect) is based on the historical split. This split, in turn, is based on SGC ’s practice of awarding up to $35   million per project (70   percent) for affordable housing and up to $15   million (30   percent) for transportation.
https://lao.ca.gov/Publications/Report/5154

Changes in University of California General Fund Spending [EdBudget]

Feb 13, 2026 - c Reflects nonresident replacement funding of $30 million for 2026-27 as well as deferred ongoing nonresident replacement funding of $31 million from 2025–26 to 2026–27 included in the 2025-26 Budget Act. 
https://lao.ca.gov/Education/EdBudget/Details/1044

The 2026-27 Budget: K-12 Proposals

Feb 19, 2026 - (These are known as Tier 2 rates.) From 2022 ‑23 through 2024 ‑25, the state appropriation remained at $4  billion annually, while the Tier 1 rate and overall Tier 1 TK ‑6 attendance increased. As a result, funding available for Tier 2 rates decreased.
https://lao.ca.gov/Publications/Report/5131