Whether or Not to Tap Reserves to Solve Estimated Budget Problem Emerges as Key Fiscal Decision Facing California’s Legislature

Apr 19, 2023 - (The state also has an additional nearly $10 billion in reserves that it can use specifically to supplement constitutionally required funding for schools and community colleges.) On the other hand, our office maintains that the economy is at a heightened risk of going into a recession, which could cause the state’s budget problem to metastasize.
https://lao.ca.gov/Publications/Report/4762

The 2020-21 Budget: Overview of the Governor's Budget

Jan 13, 2020 - Most notably, the Governor provides a combined $ 900  m illion for six programs aimed at improving school employee training, recruitment, and retention. The budget also provides $ 600  m illion for two new grant programs: (1) $ 300  m illion for grants to help low ‑performing schools and districts improve their performance and (2) $ 300  m illion for
https://lao.ca.gov/Publications/Report/4135

The Definition of Qualified Capital Outlay for the State Appropriations Limit

Feb 18, 2022 - As such, there are many types of properties that clearly meet this definition, including: buildings (such as houses, office buildings, and school buildings), land (including undeveloped land, such as parks), highways, roads, and bridges.
https://lao.ca.gov/Publications/Report/4547

New Inflation Poses Not So New Budget Risk

Dec 15, 2022 - All state spending into the economy —whether it goes toward health care, corrections, schools, or tax rebates —must be funded with revenue extracted from the economy. Reserves Offer Insurance Against Downside Risk By far, the biggest fiscal threat posed by inflation is its propensity to raise the risk of a recession.
https://lao.ca.gov/Publications/Report/4653

A Framework for Allocating Federal Recovery Funds

May 4, 2021 - Importantly, we note that there is no requirement for the state to allocate all of its recovery funds as part of this year ’s budget process. Under the ARP, the state has until the end of 2024 to expend the funding, which gives the Legislature some time to define its vision for how to use a portion of the funds to address long-standing challenges.
https://lao.ca.gov/Publications/Report/4422

The State Appropriations Limit [Publication Details]

Apr 21, 2021 - The State Appropriations Limit [Publication Details] HTML Description: This report: (1) describes how appropriations limits work for the state, school districts, and local governments in California; (2) explains why the limit is a constraint for state government; and (3) concludes with a variety of short- and long-term policy options—both of which we think the Legislature will need to take—in response to the issue.
https://lao.ca.gov/Publications/Detail/4416

The 2020-21 Budget: Structuring the Budget

Feb 10, 2020 - In addition, required General Fund spending on schools and community colleges —under the provisions of Proposition  98 (1988) —also usually declines when revenues do. If the Legislature does not wish to reduce school and community college spending in a recession, the budget problem would be larger than what we have described here, and more reserves would be required.
https://lao.ca.gov/Publications/Report/4150

Federal COVID-19-Related Funding to California

Apr 28, 2020 - The first section describes funding allocated to public entities in the state, for example, the state government, local governments, other public entities like school districts and tribal governments.
https://lao.ca.gov/Publications/Report/4226

The 2021-22 Budget: The Governor’s Proposition 2 Proposals

Apr 26, 2021 - To help address the problem, last year ’s budget suspended the otherwise required deposit for 2020 ‑21 and made a $7.8  billion withdrawal from the BSA, lowering the total balance to $8.3  billion. The withdrawal was made pursuant to the Governor ’s disaster declaration in response to the coronavirus disease 2019 (COVID-19) public health emergency and proclamation of a budget emergency on June 25, 2020.
https://lao.ca.gov/Publications/Report/4418

The 2021-22 Budget: Multiyear Budget Outlook [Publication Details]

May 23, 2021 - This report presents our office’s independent assessment of the condition of the state General Fund budget through 2024-25 assuming the economy continues to grow. While the state faces a historic surplus, a spending level beyond what is proposed by the Governor would require the Legislature to identify proposals to reject.
https://lao.ca.gov/Publications/Detail/4437