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

Jan 12, 2026 - Proposition  2 requires the state to make annual deposits into the Budget Stabilization Account (BSA), with amounts generally increasing when revenues —particularly those from capital gains —are higher.
https://lao.ca.gov/Publications/Report/5101

The 2026-27 Budget: Child Welfare

Mar 3, 2026 - Additional $81 million one ‑time provided in 2025 ‑26, available through June 30, 2028. a We note that we are currently seeking clarification from the administration on two components of BH ‑CONNECT that are funded in the Department of Health Care Services —(1) the Activity Funds Initiative (previously called activity stipends) and (2) Initial Joint Behavioral Health Home Visits.
https://lao.ca.gov/publications/report/5147

The 2026-27 Budget: State Mandate—Disclosure Requirements and Deferral of Property Taxation

Feb 19, 2026 - However, Proposition  19 (2020) allows certain homeowners (such as people who are 55 years or older) to transfer their existing home value for property tax purposes to a new home anywhere in the state.
https://lao.ca.gov/Publications/Report/5130

Prohibit new taxes on financial assets and other personal property. [Ballot]

Jan 27, 2026 - An example is a tax on money someone earned two years ago. Fiscal Effect Possibility That Tax Revenues Will Be Lower in the Future. The measure restricts the options the state and local governments have to raise taxes in the future.
https://lao.ca.gov/BallotAnalysis/Initiative/2025-041

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

Mar 9, 2026 - The four major downturns were more severe, with income tax declines ranging from 17 percent to 30 percent (average of 24 percent). Perhaps more concerning, income tax revenues stayed depressed for years following major downturns.
https://lao.ca.gov/LAOEconTax/Article/Detail/852

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

Mar 9, 2026 - The four major downturns were more severe, with income tax declines ranging from 17 percent to 30 percent (average of 24 percent). Perhaps more concerning, income tax revenues stayed depressed for years following major downturns.
https://lao.ca.gov/LAOEconTax/article/Detail/852

The 2026-27 Budget: In-Home Supportive Services

Mar 18, 2026 - Moreover, costs to administer the program also make up a small component of the growth listed above. Difficult to Account for Interaction Effects. It is important to note that some of these components may be interactive, making it difficult to conclusively attribute a portion of the growth to one specific component.
https://lao.ca.gov/Publications/Report/5166

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

Feb 23, 2026 - Direct the administration to use its continuous appropriation authority to augment CDTFA ’s allocation from the Cannabis Tax Fund by the proposed amount, prorated to cover the remainder of 2025 ‑26. Direct the administration to make any future adjustments needed to support the program without spending any money from the General Fund.
https://lao.ca.gov/Publications/Report/5132

Property tax rules for inherited property. [Ballot]

Jan 21, 2026 - The measure amends the State Constitution to exempt most homeowners ages 60 or older from property taxes on their primary home. Beginning in 2027, the measure would allow age-eligi ble homeowners to request an exemption from their county assessor if they have lived in the home for five years or lived in the state for ten years.
https://lao.ca.gov/BallotAnalysis/Initiative/2025-035

The 2026-27 Budget: Cap-and-Invest Expenditure Plan

Feb 10, 2026 - Funding Proposals From State Operations Has Implications for Money Left Available for Other Tiers. Under the administration ’s interpretation of the S B  840 methodology (which would be codified in the proposed budget trailer legislation), activities that are funded as part of GGRF state operations are prioritized above nearly all other programs and activities.
https://lao.ca.gov/Publications/Report/5114