California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - After the dot-com bust and the Great Recession, it took four and five years, respectively, for revenues to recover. Incorporating revenue risk into the budget now, therefore, reflects prudence, not pessimism.
https://lao.ca.gov/Publications/Report/5104

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - In addition, the administration estimated the state would continue to face structural deficits between $15  billion and $25  billion through  2028 ‑29. 2026 ‑27 Budget Problem Now Larger Than Anticipated.
https://lao.ca.gov/Publications/Report/5091

The 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - Budget Package Addressed a Nearly $15   Billion Budget Problem. We estimate the Legislature addressed a nearly $15  billion budget problem in the 2025 ‑26 budget package. This  budget problem is slightly higher than the one addressed by the Governor in the May Revision (around $14  billion), and results from two somewhat offsetting differences.
https://lao.ca.gov/Publications/Report/5079

The 2024-25 Budget: Deficit Update

Feb 20, 2024 - Options to Address $15  Billion in Additional Budget Problem If the budget problem increases by $15  billion, the Legislature will need to find a like amount of new budget solutions to ensure the budget is balanced for 2024 ‑25.
https://lao.ca.gov/Publications/Report/4850

The 2024-25 Budget: Overview of the Governor's Budget

Jan 13, 2024 - Specifically, the administration defines a $15  billion reduction to school and community college spending —relative to the enacted level in 2023 —as a baseline change. How Does the Governor Propose to Solve the Budget Problem?
https://lao.ca.gov/Publications/Report/4825

The 2025-26 Budget: California's Fiscal Outlook

Nov 20, 2024 - These choices included about $11  billion in spending ‑related solutions and $15  billion in all other solutions, including $5.5  billion in temporary revenue increases and a $7  billion withdrawal from the state ’s rainy ‑day fund .
https://lao.ca.gov/Publications/Report/4939

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

Oct 27, 2021 - Note: Reflects administration estimates of budgetary actions taken as of July 15, 2021, but adjusted for major actions taken later in the legislative session. b A total of $3.3 billion General Fund for Caltrans and CalSTA will revert to the General Fund because subsequent legislation to allocate the funds was not enacted by October 19, as required by the budget act.
https://lao.ca.gov/Publications/Report/4448/1

The 2021-22 Budget: Initial Comments on the Governor’s May Revision

May 17, 2021 - The majority of these one-time proposals ($15  billion) meet the definition of capital outlay for the purposes of the SAL and are excludable. Governor Proposes $15  Billion in Spending on Capital Outlay.
https://lao.ca.gov/Publications/Report/4432

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

May 17, 2025 - (The information presented in this brief is based on our understanding of the administration ’s proposals as of May 15, 2025. In many areas, our understanding of the proposals will continue to  evolve.)
https://lao.ca.gov/Publications/Report/5044

The 2024-25 Budget: Overview of the Spending Plan

Sep 6, 2024 - As a result of these actions, the revised MCO tax package provides a substantial budget solution to the state ($6.3  billion through 2024 ‑25 and nearly $15  billion through 2026 ‑27). Transportation Changes to Multiyear Transportation Infrastructure Package.  
https://lao.ca.gov/Publications/Report/4922