The 2021-22 Budget: Overview of the Governor's Budget

Jan 10, 2021 - For 2021 ‑22, the guarantee is up an additional $3  billion (3.6  percent) relative to the revised 2020 ‑21 level. In addition, a law enacted last June requires the state to make a $2.3  billion supplemental payment on top of the guarantee in 2021 ‑22.
https://lao.ca.gov/Publications/Report/4309

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

The 2021-22 Spending Plan: Other Provisions

Sep 23, 2021 - Credit Extended Into 2021. For 2021, firms again are allowed to claim $1,000 multiplied by the increase in the firm ’s average full-time employee count between the period from April to June of 2020 (as before) and the lesser of either (1)  the period from July 2020 to June of 2021 or (2)  the period from April to June of 2021.
https://lao.ca.gov/Publications/Report/4452

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 2026-27 Budget: How to Use One-Time Revenue Improvements

Feb 20, 2026 - Further, despite large revenue upgrades since June, the budget for this year remains roughly balanced. Recommend Using Windfall to Reduce Reliance on Reserves and Borrowing. Accordingly, if windfall resources are available at the May Revision, we recommend the Legislature use them to reduce the reliance on the use of reserves and borrowing in the current year.
https://lao.ca.gov/Publications/Report/5133

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - Reflecting concerns about the potential effects of tariffs, the budget act enacted in June assumed revenues would decline in 2025 ‑26 and grow modestly in 2026 ‑27. Looking primarily at strong trends in income tax collections since June would suggest a significant upgrade to budget act revenues is warranted.
https://lao.ca.gov/Publications/Report/5091

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: Overview of the Governor's Budget

Jan 12, 2026 - This budget problem was larger than the one anticipated by the administration in June, despite strong trends in income tax collections in the intervening months. There were two main reasons we anticipated the deficit to grow.
https://lao.ca.gov/Publications/Report/5101

The 2022-23 Budget: Overview of the Spending Plan

Oct 12, 2022 - Under the adopted budget plan, the state deposits a total of $9.5  billion into this account across the 2020 ‑21 through 2022 ‑23 period —an increase of $4.5  billion compared with the estimates made in June 2021.
https://lao.ca.gov/Publications/Report/4616

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

May 17, 2025 - In June 2024, the Legislature not only addressed the 2024 ‑25 budget problem, but also took proactive steps to mitigate the anticipated 2025 ‑26 budget challenge. The June 2024 budget package included $28  billion in budget solutions for 2025 ‑26, although savings from some of these actions have since diminished.
https://lao.ca.gov/Publications/Report/5044