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: Overview of the Governor's Budget

Jan 12, 2026 - Because the administration does not account for this payment, it would add to a future deficit. If revenues fall short of their projections, the state’s settle‑up obligation would decline. We understand this proposal is intended, in part, to acknowledge revenue risks and avoid unintentionally spending more than the minimum requirement if revenues decline and the requirement drops.
https://lao.ca.gov/Publications/Report/5101

California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - To do this, we add a stock market indicator to our forecast models alongside other the economic variables. The added risk variable weighs on the range of revenue outcomes that we view as most plausible.
https://lao.ca.gov/Publications/Report/5104