The 2026-27 Budget: Contract to Achieve Operational Efficiencies

Mar 10, 2026 - BCG is expected to develop and pilot an analytical model that could save money in Medi-Cal by detecting pre-payment fraud, reducing improper claims, and flagging areas of possible waste and abuse. Workstream 5: DHCS —Hospital Financing.
https://lao.ca.gov/Publications/Report/5156

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: CDTFA’s Cannabis and Tobacco Programs

Feb 23, 2026 - Money returned to the General Fund can be spent on a much wider array of programs than those supported by the Cannabis Tax Fund. Consequently, shifting enforcement costs from the Cannabis Tax Fund to the General Fund is inefficient.
https://lao.ca.gov/Publications/Report/5132

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

Feb 10, 2026 - We note that the language of S B  840 indicates that the methodology applies to “moneys in the fund ” and thus does not clearly limit it exclusively to auction revenues. However, the administration indicates that the intent of S B   840 was to apply the methodology only to auction revenues, consistent with historical practice.
https://lao.ca.gov/Publications/Report/5114

The applicability of tax increases to the state’s constitutional requirements. [Ballot]

Jan 27, 2026 - For example, drivers pay driver ’s license fees, and that money is used for state oversight of drivers and vehicles. Either Legislature or Voters Can Raise Taxes. Either the Legislature or voters can raise taxes and fees.
https://lao.ca.gov/BallotAnalysis/Initiative/2025-038

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

Oversight of certain nonprofit charities and related entities. [Ballot]

Jan 20, 2026 - If a member of the public wins their case, they may keep 25 percent to 50 percent of any civil penalties or other money awarded as well as attorney fees and costs. In contrast, an entity that wins would not be entitled to attorney fees and costs unless the court found the case had been filed unreasonably.
https://lao.ca.gov/BallotAnalysis/Initiative/2025-032

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