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

Feb 23, 2026 - The Governor proposes covering an additional $2  million of annual flavor ban enforcement costs by using existing Compliance Fund appropriations that the department has not been spending. Hemp ‑Derived Cannabinoids.
https://lao.ca.gov/Publications/Report/5132

The 2026-27 Budget: Community College Facilities

Mar 17, 2026 - As Figure  2 shows, the Governor proposes to fund all ten projects selected by the Chancellor ’s Office. The Governor ’s budget includes $28  million Proposition  2 bond funds for the preliminary plans and working drawings phases of these projects.
https://lao.ca.gov/Publications/Report/5159

The 2026-27 Budget: Community College Facilities [Publication Details]

Mar 17, 2026 - This post assesses the Governor’s proposals to fund the second batch of community college capital outlay projects under Proposition 2, an education facilities bond.
https://lao.ca.gov/Publications/Detail/5159

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: CDTFA’s Cannabis and Tobacco Programs [Publication Details]

Feb 23, 2026 - In this post, we discuss three Governor’s budget proposals for the Department of Tax and Fee Administration’s (CDTFA’s) cannabis and tobacco programs.
https://lao.ca.gov/Publications/Detail/5132

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

Assessing a Shift to Enrollment-Based School Funding

Jan 6, 2026 - Second, Test 2 or Test 3 would have to be the applicable test. Our  November 2025 fiscal outlook, however, projects Test 1 will likely remain operative through the end of our forecast in 2029 ‑30. This projection is mainly related to declines in births and reductions in the school ‑age population —trends that are unlikely to reverse  quickly or change in response to enrollment ‑based funding.
https://lao.ca.gov/Publications/Report/5100

The 2026-27 Budget: K-12 Proposals

Feb 19, 2026 - (These are known as Tier 2 rates.) From 2022 ‑23 through 2024 ‑25, the state appropriation remained at $4  billion annually, while the Tier 1 rate and overall Tier 1 TK ‑6 attendance increased. As a result, funding available for Tier 2 rates decreased.
https://lao.ca.gov/Publications/Report/5131

The 2026-27 Budget: Proposition 98 Guarantee and K-12 Spending Plan

Feb 4, 2026 - For any given year, the relationship between revenues and the guarantee depends on which Proposition  98 test is operative and whether another test could become operative with different inputs. In 2025 ‑26 and 2026 ‑27, Test 1 is likely to remain operative even if revenues or other inputs vary significantly from the Governor ’s budget estimates.
https://lao.ca.gov/Publications/Report/5110