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

Jan 12, 2026 - First, while our revenue forecast represented an upgrade to budget act assumptions, it also incorporated the strong risk of a sto ck market downturn, which tempered the estimates. Second, we found that spending was much higher than had been anticipated in June, in large part due to the state ’s constitutional requirements eroding revenue gains.
https://lao.ca.gov/Publications/Report/5101