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 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - During the special session, the Legislature added Control Sections 90.00 and 90.01 to the 2024 ‑25 Budget Act providing up to $2.5  billion one ‑time for response and recovery costs related to the January 2025 Southern California wildfires.
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

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 2025-26 Budget: California's Fiscal Outlook

Nov 20, 2024 - Outside of government and health care, the state has added no jobs in a year and a half. Similarly, the number of Californians who are unemployed is 25  percent higher than during the strong labor markets of 2019 and 2022.
https://lao.ca.gov/Publications/Report/4939

The 2024-25 Budget: Overview of the Spending Plan

Sep 6, 2024 - Instead, smaller than proposed reductions were made to the Multifamily Housing Program ($10  million General Fund reduction) and the Regional Early Action Planning Program ($40  million General Fund reduction), and no reductions were made to the Housing Navigator and Maintenance Program.
https://lao.ca.gov/Publications/Report/4922

Rethinking California's Reserve Policy

Apr 10, 2025 - Functionally, California ’s General Fund budget is divided into two parts: one dedicated to K ‑14 education (about 40  percent of the total) and another part that funds everything else (roughly 60  percent of the total).
https://lao.ca.gov/Publications/Report/5028

The 2022-23 California Spending Plan: Other Provisions

Sep 27, 2022 - If the worker (or a family member) tests positive for COVID-19, the law requires employers to provide up to an additional 40 hours (for a total of 80 hours) of sick leave if needed. Increased Weekly PFL and DI Benefits.
https://lao.ca.gov/Publications/Report/4626

The 2023-24 Budget: Overview of the Spending Plan (Final Version)

Oct 16, 2023 - Prior to the COVID ‑19 pandemic, families making at least 40  percent of the state median income were required to pay a fee (varying from about 1  percent to 10  percent of family income) for child care and full ‑day State Preschool services.
https://lao.ca.gov/Publications/Report/4788

The 2023-24 Budget: California's Fiscal Outlook

Nov 16, 2022 - Most of this increase reflects our General Fund revenue estimates, with the constitutional formulas generally directing about 40  percent of state revenue growth toward the Proposition  98 guarantee.
https://lao.ca.gov/Publications/Report/4646