California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - The current discrepancy over the size of the state ’s budget deficit —$18  billion under the Legislative Analyst ’s Office estimate versus $3  billion in the Governor ’s budget —fits squarely within that pattern.
https://lao.ca.gov/Publications/Report/5104

Oversight of certain public benefit artificial intelligence (AI) companies. [Ballot]

Jan 20, 2026 - The measure would have the following major fiscal effects: Increased state costs that would likely be in the tens of millions of dollars annually to establish and operate a new regulatory commission overseeing certain public benefit AI com panies.
https://lao.ca.gov/BallotAnalysis/Initiative/2025-033

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

Mar 9, 2026 - By most measures, the global financial crisis was more severe than the dot-com crash. The state 's unemployment rate, for example, peaked at 7 percent following the dot-com crash but reached nearly double that during the financial crisis and remained elevated for much longer.
https://lao.ca.gov/LAOEconTax/Article/Detail/852

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

Mar 9, 2026 - By most measures, the global financial crisis was more severe than the dot-com crash. The state 's unemployment rate, for example, peaked at 7 percent following the dot-com crash but reached nearly double that during the financial crisis and remained elevated for much longer.
https://lao.ca.gov/LAOEconTax/article/Detail/852

The 2026-27 Budget: Food Assistance Programs

Feb 18, 2026 - CDSS estimates that there are about 954,800 individuals that fit the expanded ABAWD criteria (compared to about 345,400 individuals who are estimated to meet the prior criteria). Of these, CDSS estimates approximately 845,000 individuals that will become subject to the work requirement beginning June 2026 and not qualify for an exemption.
https://lao.ca.gov/Publications/Report/5126

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

Feb 23, 2026 - A plain ‑language reading of the budget act gives each department substantial flexibility to use appropriations as it sees fit. The Legislature grants this flexibility with the understanding that the administration will strive to respect the Legislature ’s and voters ’ intent and use resources efficiently, transparently, and equitably.
https://lao.ca.gov/Publications/Report/5132

The 2026-27 Budget: California Community Colleges

Mar 5, 2026 - If  the state does not provide an increase, then each district would see its apportionments prorated downward to fit within the previously enacted funding level. Under the administration ’s apportionments cost estimates at the Governor ’s budget, each district ’s apportionments would be reduced by less than 1  percent.
https://lao.ca.gov/Publications/Report/5150

The 2026-27 Budget: K-12 Proposals

Feb 19, 2026 - (In some cases, LEAs may decide the model was not a good fit for their specific schools.) Building this local buy ‑in is important for the long ‑term success of the community schools model and can help support other key efforts, such as identifying other sources of funding that can sustain the model.
https://lao.ca.gov/Publications/Report/5131

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

Feb 10, 2026 - The Legislature could consider whether the proposed uses of these funds represent its highest priorities or if it would prefer to reallocate them to other priorities that fit within the legally allowable  uses.
https://lao.ca.gov/Publications/Report/5116