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

Feb 20, 2026 - Instead, using one-time resources to improve budget resilience would help the state meet its coming fiscal challenges. Figure 1 The State ’s New Wall of Debt (In Billions)
https://lao.ca.gov/Publications/Report/5133

California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - This proposal helps balance the budget but runs counter to the basic fiscal logic that stronger-than-expected revenues should be used to build reserves. In short, although the economy is not in recession and the stock market has been booming, the budget is only precariously balanced.
https://lao.ca.gov/Publications/Report/5104