The 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - How the Spending Plan Addresses the Budget Problem The state has several types of solutions —or options —for addressing a budget problem, but the most important include: reserve withdrawals, spending reductions, revenue increases, and borrowing (for example, loaning money from other funds to the General Fund).
https://lao.ca.gov/Publications/Report/5079

California's Legislative Analyst's Office and the Value of Independence

Nov 15, 2024 - As such, our independent fiscal assessment underlies the Legislature ’s ability to assert an informed check on the executive branch, making any added complexity from diverging estimates a worthwhile trade-off.
https://lao.ca.gov/Publications/Report/4938

California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - The added risk variable weighs on the range of revenue outcomes that we view as most plausible. The middle of the range, which becomes our main revenue forecast, is thus lower than if we did not include the stock market risk indicator.
https://lao.ca.gov/Publications/Report/5104

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - This spending, coupled with sizable gains to investors and tech company employees via stock options, is boosting state income tax receipts. This Time Might Be Different, but It Is Not Safe to Bet on It.
https://lao.ca.gov/Publications/Report/5091

Rethinking California's Reserve Policy

Apr 10, 2025 - Two Options to Reach This Higher Threshold. If the cap is raised, the state would also need to set aside more in reserve deposits to dependably reach this higher amount. There are many options for doing this, but given the volatility in the state ’s revenues, we think it is important to set aside much more funds in years when revenues are surging , rather than setting aside somewhat more in every year.
https://lao.ca.gov/Publications/Report/5028

The 2021-22 California Spending Plan: The State Appropriations Limit

Aug 30, 2021 - The 2021-22 California Spending Plan: The State Appropriations Limit The 2021-22 California Spending Plan The State Appropriations Limit In the late 1970s, voters passed Proposition  4 (1979), which added Article XIIIB to the State Constitution.
https://lao.ca.gov/Publications/Report/4449

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

May 17, 2025 - Finally, although we have not previously recommended the Leg islature take decisive action to address the structural deficits, the state ’s persistent fiscal imbalance and the added downside risks —particularly from potential federal actions —suggest a need for a more proactive approach.
https://lao.ca.gov/Publications/Report/5044

The State Appropriations Limit

Apr 21, 2021 - The State Appropriations Limit Introduction In the late 1970s, voters passed Proposition  4 (1979), which added Article XIIIB to the State Constitution. Article XIIIB established an appropriations limit on the state and most types of local governments.
https://lao.ca.gov/Publications/Report/4416

The 2024-25 Budget: California's Fiscal Outlook

Dec 7, 2023 - Solving the Budget Problem State Has Various Options to Address the Budget Problem. While addressing a deficit of $68  billion will be challenging, the Legislature has a number of options available to do so.
https://lao.ca.gov/Publications/Report/4819

The 2024-25 Budget: Deficit Update

Feb 20, 2024 - Options Possibly Available to Reduce One-Time and Temporary Spending State Allocated Large Shares of Surpluses to Temporary Purposes, Although Some Has Been Disbursed or Already Proposed for Reduction.
https://lao.ca.gov/Publications/Report/4850