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

The 2026-27 Budget: Food Assistance Programs

Feb 18, 2026 - Beginning October 2027, H.R. 1 requires states to cover a portion of what now are federally funded CalFresh benefits. This state share is only imposed on states that have a payment error rate of 6  percent or higher.
https://lao.ca.gov/Publications/Report/5126

The 2026-27 Budget: Overview of the Governor's Budget [Publication Details]

Jan 12, 2026 - On January 9, 2026, Governor Newsom’s administration presented its proposed state budget to the California Legislature. In this report, we provide a high-level summary and our initial analysis of the Governor’s budget based on our preliminary review (as of January 10). Assembly Budget Handout (PDF) Senate Budget and Fiscal Review Handout (PDF)
https://lao.ca.gov/Publications/Detail/5101

The 2026-27 Budget: Food Assistance Programs [Publication Details]

Feb 18, 2026 - In this post, we assess the Governor's proposed budget for food assistance programs, including CalFresh.
https://lao.ca.gov/Publications/Detail/5126

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: Cap-and-Invest Expenditure Plan [Publication Details]

Feb 10, 2026 - In this report, we review the Governor’s proposed plan for spending cap-and-invest revenues in 2026-27.
https://lao.ca.gov/Publications/Detail/5114

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

Feb 10, 2026 - In light of this, we think the Legislature should carefully consider what types of activities it would like to include in this category —and potentially provide this guidance to the administration in statute, as appropriate —recognizing that this year ’s decisions could serve as a precedent going forward.
https://lao.ca.gov/Publications/Report/5114

The 2026-27 Budget: County Administration and H.R. 1 Implementation

Mar 5, 2026 - Without a methodology that links funding to workload, funding could become insufficient or exceed what is required for efficient operations without a clear way of assessing what adjustments are needed.
https://lao.ca.gov/Publications/Report/5149

The 2026-27 Budget: Child Welfare

Mar 3, 2026 - Some questions for the Legislature to consider as it oversees these programs include: What are the major outputs, outcomes, and impacts of the funding to date? What do youth and families view as the most notable results or effects of the funding?
https://lao.ca.gov/publications/report/5147