The 2026-27 Budget [Publication Details]

Jan 1, 2026 - As we release publications aimed at addressing the 2026-27 budget situation, we will add them to this index page.
https://lao.ca.gov/Publications/Detail/5107

The 2026-27 Budget: California Department of Corrections and Rehabilitation

Feb 23, 2026 - Recommendations Approve Fire Watch Funding. We recommend the Legislature approve the one ‑time $15.2  million General Fund proposed for fire watch. Given the important safety function these funds support and CDCR ’s inability to address these costs due to the structural shortfall, this proposal meets the high bar for additional General Fund spending that we think
https://lao.ca.gov/Publications/Report/5137

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: Overview of the Governor's Budget

Jan 12, 2026 - 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

The 2026-27 Budget: K-12 Proposals

Feb 19, 2026 - The R ‑TACs have provided a wide range of technical assistance to schools, including assisting in conducting asset mapping and community needs assessments and offering communities of practice, where groups of schools implementing the model can share best practices.
https://lao.ca.gov/Publications/Report/5131

Addressing Chronic Vacancies in Prison Mental Health Care

Feb 23, 2026 - By continuing to place people with mental health needs at hard ‑to ‑staff prisons, CDCR must recruit mental health staff where few are available or willing to work, contributing to chronic vacancies.
https://lao.ca.gov/Publications/Report/5134

The 2026-27 Budget: California Competes Extension

Mar 18, 2026 - In years where the program is fully subscribed, there is an opportunity cost associated with an agreement that is not fulfilled. Namely, those tax credits could have been awarded to another applicant who would have been more likely to achieve their milestones.
https://lao.ca.gov/Publications/Report/5162

The 2026-27 Budget: Supplemental Security Income/State Supplementary Payment (SSI/SSP) Program

Mar 3, 2026 - This includes 12 counties (where 28.6  percent of SSI/SSP recipients live) where the maximum SSI/SSP grant for couples is less than the FMR for an efficiency unit. Subscribe | California State Legislature | Online Voter Registration | Privacy Policy | Accessibility Legislative Analyst's Office | The California Legislature's Nonpartisan Fiscal and Policy Advisor 925 L Street, Suite 1000 Sacramento, CA 95814 | (916) 445-4656
https://lao.ca.gov/Publications/Report/5148

The 2026-27 Budget: Re-Envisioning State Education Governance

Mar 18, 2026 - Governance becomes even more blurred in areas where the SPI shares authority with one of the smaller agencies. As Policy Analysis for California Education explained in 2025, “this fragmented, disjointed structure reflects the complexity of California ’s TK ‑12 system, where multiple entities operate independently, often with overlapping responsibilities. ” Muddled Direction to Schools.
https://lao.ca.gov/Publications/Report/5165