California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - The current discrepancy over the size of the state ’s budget deficit —$18  billion under the Legislative Analyst ’s Office estimate versus $3  billion in the Governor ’s budget —fits squarely within that pattern.
https://lao.ca.gov/Publications/Report/5104

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 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - Figure 3 General Fund Condition Under Fiscal Outlook (In Millions)
https://lao.ca.gov/Publications/Report/5091

Whether or Not to Tap Reserves to Solve Estimated Budget Problem Emerges as Key Fiscal Decision Facing California’s Legislature

Apr 19, 2023 - Other downturns, such as the 2001 so-called dot-com recession, had severe fiscal implications while inflicting somewhat milder economic damage. The 2008 Great Recession had brutal effects on both the state ’s economy and budget.
https://lao.ca.gov/Publications/Report/4762

The 2023-24 Budget: Multiyear Assessment

Feb 15, 2023 - Three of those —the recession in the early 1990s, the dot ‑com bust in the early 2000s, and the Great Recession —resulted in large revenue shortfalls and ensuing multiyear deficits, even for some years after each recession ended.
https://lao.ca.gov/Publications/Report/4687

Rethinking California's Reserve Policy

Apr 10, 2025 - Throughout this period, as shown on the right side of Figure  3, the SFEU balance was generally enacted around 1  percent to 3  percent of revenues —very small compared to the reserves and surpluses of the decades before.
https://lao.ca.gov/Publications/Report/5028

The State Appropriations Limit

Apr 21, 2021 - This prohibition applies from March  3, 2021 t o the last date on which the state expends the funds. (The state has until December 31, 2024 t o use the funds.) As of this writing, we do not yet know how strictly the U.S.
https://lao.ca.gov/Publications/Report/4416

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

Feb 20, 2026 - For example, we recommend the Legislature: Do Not Suspend the $3  Billion True Up Into the Budget Stabilization Account (BSA). The Governor ’s budget proposes suspending a roughly $3  billion true-up deposit that otherwise would be required in 2025-26.
https://lao.ca.gov/Publications/Report/5133

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

Jan 12, 2026 - The administration projects the budget faces a roughly $3  billion deficit. This is lower than our November Fiscal Outlook estimate of an $18  billion deficit, for two offsetting reasons. First, and most importantly, the administration ’s revenue estimate is considerably higher than ours because it does not incorporate the strong risk of a stock market downturn.
https://lao.ca.gov/Publications/Report/5101

The 2024-25 California Spending Plan: Other Provisions

Oct 2, 2024 - Chapter 112 of 2021 (SB 156, Committee on Budget and Fiscal Review) requires CPUC (among other departments) to lead or support several state broadband infrastructure programs and projects. To assist these efforts, the 2021-22 Budget Act provided temporary funding, from 2021-22 to 2023-24, for 46 permanent positions and 4 limited-term positions.
https://lao.ca.gov/Publications/Report/4934