The 2025-26 Budget: Initial Comments on the Governor's May Revision

May 17, 2025 - For  example, this includes a proposal to provide $1.3  billion less in total funding for schools and community colleges than the estimated constitutional minimum for 2024 ‑25. This yields one ‑time General Fund savings in that year but creates a “settle ‑up ” obligation that will need to be paid in a future year if 2024 ‑25 revenues remain unchanged.
https://lao.ca.gov/Publications/Report/5044

The 2025-26 Budget: Overview of the Governor's Budget

Jan 13, 2025 - Savings Proposals Generates $1.6 Billion School and Community College Settle‑Up Obligation in 2024‑25. The Governor’s budget proposes providing $1.6 billion less in total funding for schools and community colleges than the estimated constitutional minimum funding level for 2024‑25.
https://lao.ca.gov/Publications/Report/4951

Rethinking California's Reserve Policy

Apr 10, 2025 - Since 2014, the state has suspended and made withdrawals from the BSA in two years: 2020 ‑21 and 2024 ‑25. In addition, there is a withdrawal planned for 2025 ‑26 under legislative action taken last year.
https://lao.ca.gov/Publications/Report/5028

The 2025-26 Budget: Multiyear Budget Outlook

May 24, 2025 - New and Existing Budgetary Borrowing Increase Out-Year Budget Problems. Since 2023-24, the Legislature has addressed a cumulative total of $82  billion in budget shortfalls, with the May Revision reflecting another shortfall.
https://lao.ca.gov/Publications/Report/5052

The 2025-26 Budget: Undertaking Fiscal Oversight

Feb 24, 2025 - For example, the minimum funding level for schools and community colleges is set by the constitutional requirements of Proposition  98 (1988). While the Legislature can change how funds within Proposition  98 are distributed, funding less than the constitutional minimum in any particular year requires a two-thirds vote and creates a future obligation for more school funding in subsequent budgets.
https://lao.ca.gov/Publications/Report/4983

Rethinking California's Reserve Policy [Publication Details]

Apr 10, 2025 - Over the last few years, the state has indeed experienced significant fluctuations—large surpluses followed by significant deficits. This volatility has prompted interest in changes to the state’s reserve policy.
https://lao.ca.gov/Publications/Detail/5028

The 2025-26 Budget: Undertaking Fiscal Oversight [Publication Details]

Feb 24, 2025 - This post provides guidance to the Legislature for conducting fiscal oversight. As outlined in our November Fiscal Outlook, we advise the Legislature to use the 2025-26 budget process to conduct robust fiscal oversight of state programs.
https://lao.ca.gov/Publications/Detail/4983

The 2025-26 Budget: Overview of the Governor's Budget [Publication Details]

Jan 13, 2025 - Update (1/16/25): A set of tables detailing various solutions and proposals has been appended to the online version of this report. They are available using the HTML link above. On January 10, 2025, Governor Newsom’s administration presented its proposed state budget to the California Legislature.
https://lao.ca.gov/Publications/Detail/4951

The 2025-26 Budget: Overview of the Governor's Budget

Jan 13, 2025 - Update (1/16/25): A set of tables detailing various solutions and proposals has been appended to the online version of this report. They are available using the HTML link above. On January 10, 2025, Governor Newsom’s administration presented its proposed state budget to the California Legislature.
https://lao.ca.gov/Publications/Report/4951/1

The 2025-26 Budget: Overview of the Governor's Budget

Jan 13, 2025 - Update (1/16/25): A set of tables detailing various solutions and proposals has been appended to the online version of this report. They are available using the HTML link above. On January 10, 2025, Governor Newsom’s administration presented its proposed state budget to the California Legislature.
https://lao.ca.gov/Publications/Report/4951/2