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

Jan 12, 2026 - As a result, we consider the entire balance of the SFEU to be a discretionary choice. 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

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

Mar 9, 2026 - This Time Might Be Different, but It Is Not Safe to Bet on It.   As our office warned last November, it now appears time to take seriously the notion that the stock market has become overheated. While there is a chance that this time is different and no such downturn is forthcoming, the risk appears strong enough that we have incorporated it into the state 's revenue outlook.  
https://lao.ca.gov/LAOEconTax/Article/Detail/852

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

Mar 9, 2026 - This Time Might Be Different, but It Is Not Safe to Bet on It.   As our office warned last November, it now appears time to take seriously the notion that the stock market has become overheated. While there is a chance that this time is different and no such downturn is forthcoming, the risk appears strong enough that we have incorporated it into the state 's revenue outlook.  
https://lao.ca.gov/LAOEconTax/article/Detail/852

The 2026-27 Budget: California Public Utilities Commission’s Implementation of AB 1207

Feb 10, 2026 - Choices about how to distribute these credits have important implications, as they will affect the allocation of rebates that could be worth tens of billions of dollars in total through 2045. Given the high stakes involved, it will be important for the Legislature to consider whether it is comfortable with deferring decisions on the structure of the credi ts to CPUC, as is
https://lao.ca.gov/Publications/Report/5120

The 2026-27 Budget: Medi-Cal Analysis

Mar 2, 2026 - Governor’s Policy Choices Affecting UIS Population UIS ‑Related Proposals Come Amid a Challenging Fiscal Backdrop, but Some Fiscal Effects Rem ain Unclear. The proposals to extend the H.R. 1 requirements to adults with UIS and to transition newly UIS groups to restricted ‑scope coverage are policy choices.
https://lao.ca.gov/Publications/Report/5146

The 2026-27 Budget: Framework for Approaching the Natural Resources, Environmental Protection, and Agriculture Budget

Feb 10, 2026 - Given the difficult choices it faces in crafting this year ’s budget, the Legislature may wish to reassess whether recent augmentations and previous agreements continue to reflect its highest priorities.
https://lao.ca.gov/Publications/Report/5116

The 2026-27 Budget: Department of Developmental Services

Mar 13, 2026 - The Lanterman Act Grants Access to Services According to Each Consumer ’s Choices. The Lanterman Act guides the availability and delivery of services in DDS. The act states: “An array of services and supports should be established which is sufficiently complete to meet the needs and choices of each person with developmental disabilities, regardless of age or
https://lao.ca.gov/Publications/Report/5157

The 2026-27 Budget: California Student Aid Commission

Feb 17, 2026 - Given the MCS program has significant overlap with the Cal Grant program, is less targeted to lower ‑income students, and is more complex to convey and administer than other financial aid programs, reducing MCS award coverage could be among the least disruptive choices the Legislature  faces.
https://lao.ca.gov/Publications/Report/5127

The 2026-27 Budget: CDTFA’s Cannabis and Tobacco Programs

Feb 23, 2026 - Despite “Workload ” Framing, Level of Enforcement Is a Policy Choice. For programs to work as expected, departments must complete many tasks. For example, when taxpayers file returns, CDTFA must process every return.
https://lao.ca.gov/Publications/Report/5132

The 2026-27 Budget: In-Home Supportive Services

Mar 18, 2026 - The state receives an enhanced federal reimbursement rate for many IHSS recipients who receive services as a result of the Patient Protection and Affordable Care Act expansion (90  percent federal reimbursement rate) and the Community First Choice Option waiver (56  percent federal reimbursement rate).
https://lao.ca.gov/Publications/Report/5166