The 2025-26 Budget: Multiyear Budget Outlook

May 24, 2025 - Both our office and the Department of Finance (DOF) project operating deficits ranging from $10  billion to $20  billion over the multiyear period. These shortfalls represent future budget problems that would require additional budget-balancing decisions.
https://lao.ca.gov/Publications/Report/5052

The 2025-26 Budget: Concession Bargaining [Publication Details]

May 19, 2025 - This is our analysis of the Governor’s May Revision proposal to (1) not fund scheduled pay increases to state employees established in ratified labor agreements and (2) authorize the Department of Finance (DOF) to impose reductions to employee compensation if collective bargaining agreements to achieve savings are not in place by July 1, 2025.
https://lao.ca.gov/Publications/Detail/5047

The 2025-26 Budget: Concession Bargaining

May 19, 2025 - As part of the May Revision, the administration proposes new control section language under Control Section 3.90 to (1) authorize the Director of Finance to reduce as appropriate each item of appropriation in the budget to reflect “a reduction in employee compensation to be achieved through collective bargaining agreements” and the administration extending reductions to employees
https://lao.ca.gov/Publications/Report/5047

The 2025-26 Budget: Cap-and-Trade Reauthorization and Greenhouse Gas Reduction Fund Proposals at May Revision

May 19, 2025 - The proposal includes language that would allow the Department of Finance to backfill with General Fund should GGRF fall short of the levels necessary to fund these programs in any given year. Eliminates Planned Discretionary Spending.
https://lao.ca.gov/Publications/Report/5049

The 2025-26 Budget: State Mandate—Santa Ana Regional Water Quality Control Board

May 5, 2025 - The Department of Finance indicates that this approach is allowable under the Constitution. We note, however, that local governments cannot go back in time 15 years and cease required activities to avoid incurring costs.
https://lao.ca.gov/Publications/Report/5039

Trends in Higher Education: Facilities [Publication Details]

Apr 30, 2025 - This is the final brief of a six-part series covering higher education trends in California. This brief focuses on higher education facilities. The brief includes key issues for the Legislature to consider as it makes related policy and budget decisions.
https://lao.ca.gov/Publications/Detail/5037

Preliminary Assessment of Significant Changes to State's Technology Project Approval and Oversight Processes

Apr 29, 2025 - GenAI = generative artificial intelligence; POC = proof of concept; CalHHS = California Health and Human Services Agency; Caltrans = California Department of Transportation; CDPH = California Department of Public Health; CDTFA = California Department of Tax and Fee Administration; DOF = Department of Finance; EDD = Employment Development Department; and HCD = Department of Hous ing and Community Development.
https://lao.ca.gov/Publications/Report/5034

Improving Legislative Oversight of Emergency Authorities

Apr 10, 2025 - Most notably, the statute authorizes the Department of Finance (DOF) to transfer funds from the Special Fund for Economic Uncertainties (SFEU) to the Disaster Response ‑Emergency Operations Account (DREOA) and allocate funds from DREOA to state departments for disaster response operations costs.
https://lao.ca.gov/Publications/Report/5029

The 2025-26 Budget: Department of Financial Protection and Innovation [Publication Details]

Apr 3, 2025 - In this post, we assess administration-proposed trailer bill language that would increase certain fees charged by the Department of Financial Protection and Innovation and make recommendations to help ensure the department has the resources it needs to meet its oversight and regulatory mission.
https://lao.ca.gov/Publications/Detail/5025

The 2025-26 Budget: Department of Financial Protection and Innovation

Apr 3, 2025 - This method of financing puts the cost of regulation on those who receive regulatory services (such as the issuance of a license, the review of an application, or enforcement against fraudulent actors).
https://lao.ca.gov/Publications/Report/5025