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

Jan 12, 2026 - That said, recent budgets have set the SFEU bet ween $3.5  billion and $4.5  billion, so the Governor ’s budget proposal to set the balance to $4.5  billion is generally in line with recent policy.
https://lao.ca.gov/Publications/Report/5101

California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - 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. In this way, our approach represents a hedge; estimated revenues are not as low as they would be in an outright downturn, nor are they as high as is possible if there is no downturn.
https://lao.ca.gov/Publications/Report/5104