Understanding $100 Billion in Spending Growth: Causes and Fiscal Implications

Apr 28, 2026 - …At a Time of High Inflation. After decades of relatively low inflation, prices for many goods and services began rising rapidly in 2021, reflecting supply chain disruptions and strong demand. Inflation peaked in mid ‑2022 and began to moderate in 2023 as supply conditions improved and the Federal Reserve increased interest rates.
https://lao.ca.gov/Publications/Report/5176

The 2026-27 Budget: Initial Comments on the Governor's May Revision

May 18, 2026 - We understand this proposal is intended, in part, to acknowledge revenue risks and avoid unintentionally spending more than the minimum requirement if revenues decline and the requirement drops. May Revision Would Bring Total Borrowing Close to $30   Billion.
https://lao.ca.gov/Publications/Report/5187

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

Jan 12, 2026 - Implementing Immigrant Population ‑Related H.R. 1 Policies in Medi ‑Cal. As part of the state ’s required implementation of H.R. 1, the Governor proposes taking two discretionary actions related to immigrants that reduce state costs.
https://lao.ca.gov/Publications/Report/5101

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