California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - Despite our view that there is a strong possibility of a market downturn, however, our revenue forecast does not assume one will occur. Rather, we ’ve incorporated the elevated risk of a downturn into our estimates.
https://lao.ca.gov/Publications/Report/5104

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

Feb 20, 2026 - The 2026-27 Budget: How to Use One-Time Revenue Improvements The 2026-27 Budget How to Use One-Time Revenue Improvements Recent stock market performance continues to boost income tax collections. In our Fiscal Outlook , we strongly advised the Legislature to treat near-term strength in tax collections as temporary because we expect these gains to reverse.
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 budget problem was larger than the one anticipated by the administration in June, despite strong trends in income tax collections in the intervening months. There were two main reasons we anticipated the deficit to grow.
https://lao.ca.gov/Publications/Report/5101