The 2024-25 Budget: Proposition 2 Debt Payment Proposals

Mar 20, 2024 - Supplemental Pensions Payments Employers May Contribute Any Amount of Money Above What Is Required. Pension boards determine —either according to actuarial standards or statutory requirements —how much money employers must contribute to the pension system each year to address any existing unfunded liabilities.
https://lao.ca.gov/Publications/Report/4887

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

Apr 26, 2021 - Figure 1 True Up Provisions. Under Proposition  2 ’s “true up ” provisions, the state reevaluates the BSA estimate twice: once in each two subsequent budgets. Under these reevaluations, the state revises the BSA deposit up or down if capital gains taxes were higher or lower than the state ’s prior estimates.
https://lao.ca.gov/Publications/Report/4418

The 2025-26 Budget: California's Fiscal Outlook

Nov 20, 2024 - Instead, much of the bounce appears to be tied to special forms of pay for high ‑income workers, such as bonuses and stock  compensation. Booming Stock Market Driving Income Growth. The recent run ‑up in the stock market, which appears tied to optimism surrounding artificial intelligence, is a primary driver of the rapid growth in pay to high ‑income workers.
https://lao.ca.gov/Publications/Report/4939

The 2026-27 Budget: Overview of the Governor's Budget

Jan 12, 2026 - Ongoing, the Governor ’s spending ‑related solutions provide $5  billion in savings within a few years. Appendix 1 provides a list of the Governor ’s budget solutions. Generates $5.6 Billion School and Community College Settle‑Up Obligation in 2025‑26.
https://lao.ca.gov/Publications/Report/5101

The 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - In this publication we: provide an overview of the 2025 ‑26 budget package, give a brief description of how the budget process unfolded, and then highlight the major features of the budget approved by the Legislature and signed by the Governor.
https://lao.ca.gov/Publications/Report/5079

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - This is about $5  billion larger than the budget problem anticipated by the administration in June,  despite improvements in revenue. This is because constitutional spending requirements under Proposition  98 (1988) and Proposition  2 (2014) almost entirely offset revenue gains.
https://lao.ca.gov/Publications/Report/5091

The 2025-26 Budget: Overview of the Governor's Budget

Jan 13, 2025 - The forthcoming Appendix 2 and 3 will also provide a complete list of the savings, spending, and tax expenditure proposals. Savings Proposals Generates $1.6 Billion School and Community College Settle‑Up Obligation in 2024‑25.
https://lao.ca.gov/Publications/Report/4951

Rethinking California's Reserve Policy

Apr 10, 2025 - This change need not occur immediately as it will take time for the state to build up reserves through future economic cycles. As such, we suggest the Legislature ask the voters to authorize a scheduled, phased‑in increase: 20 percent to take effect immediately after the next statewide election, 25 percent in 2030, and increasing by 5 percent every five years until the cap reaches a maximum of 50 percent in 2055.
https://lao.ca.gov/Publications/Report/5028

The 2021-22 Budget: Overview of the Spending Plan (Final Version)

Oct 27, 2021 - Under the June 2021 b udget plan, the total required deposit is $4. 5 b illion —$1. 9 b illion in 2020 ‑21 and $2. 6 b illion in 2021 ‑22. The largest discretionary allocation of Proposition 98 funding is $12. 5 b illion to pay down the deferrals the state adopted as part of the June 2020 b udget plan.
https://lao.ca.gov/Publications/Report/4448

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

May 17, 2025 - Revenues Lower by About $5   Billion. The May Revision downgrades the administration ’s revenue estimates by $5  billion. Revenues for prior and current years are up a total of $6  billion, primarily reflecting stronger ‑than ‑expect personal income tax collections which are running $4  billion ahead of prior projections as of April.
https://lao.ca.gov/Publications/Report/5044