The 2024-25 Budget: Proposition 2 Debt Payment Proposals

Mar 20, 2024 - Proposition 2 Proposition   2 Contains Annual Debt Payment Requirement. Proposition  2 created new rules regarding: (1)  deposits into the state ’s rainy ‑day fund and (2)  accelerating payments toward certain eligible debts.
https://lao.ca.gov/Publications/Report/4887

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

Jan 12, 2026 - This includes proposals to: (1)  remove the state ’s share of costs associated with growth in IHSS hours per case, which we estimate could save $650  million by 2029 ‑30 (if hours continue to grow at their current rates); (2)  make an ongoing reduction to the Middle Class Scholarship program, which generates $541  million in savings beginning in
https://lao.ca.gov/Publications/Report/5101

The 2021-22 Budget: The Governor’s Proposition 2 Proposals

Apr 26, 2021 - Proposition  2 requires the state to spend a minimum amount each year to pay down specified debts through 2029 ‑30. When Proposition  2 was passed by the voters, there were two major categories of liabilities eligible for repayment using these monies: certain budgetary liabilities and retirement liabilities.
https://lao.ca.gov/Publications/Report/4418

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

Feb 20, 2026 - In addition, recent budgets have relied on nearly $30  billion in borrowing to address deficits, and the Governor ’s budget proposes almost $6  billion in additional borrowing (see Figure  1). A period of strong revenue growth is not an appropriate time to draw down significant reserves or continue to rely on borrowing.
https://lao.ca.gov/Publications/Report/5133

The 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - As of June 30, 2025, $335.9  million exclusively from the General Fund had been allocated through the control sections by DOF for these purposes. After the special session, the sections were amended to allow funds to be used to reimburse local governments through June 2026 for (1)  unmet response and recovery costs, and (2)  lost property tax revenue.
https://lao.ca.gov/Publications/Report/5079

Rethinking California's Reserve Policy

Apr 10, 2025 - As shown in Figure  13 , since Proposition  2 was passed, excess capital gains to Proposition  2 have been reduced between 0  percent to 30  percent each year (larger increments are also possible, if not likely, in the future).
https://lao.ca.gov/Publications/Report/5028

The 2024-25 Budget: Deficit Update

Feb 20, 2024 - Figure 1 Summary of Possible Remaining One ‑Time and Temporary Spending (In Millions)
https://lao.ca.gov/Publications/Report/4850

California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - Because of how sensitive California ’s revenues are to stock market performance, the Governor ’s approach yields a revenue estimate that is $30  billion above that of our office. Regardless of the revenue assumption used in the 2026-27 budget, both our office and the Governor ’s Department of Finance (DOF) agree that the state faces large structural deficits.
https://lao.ca.gov/Publications/Report/5104

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - This year, for example, our outlook reflects our best estimates of the effects of H.R. 1: One Big Beautiful Bill Act on the state budget but does not make assumptions about future federal policy changes.
https://lao.ca.gov/Publications/Report/5091

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

Oct 16, 2023 - The budget package includes $2.7 billion in one time funds from various state and federal fund sources to support the following: (1) monthly rate supplement payments to providers based on region and number of enrolled children from January 1, 2024 through June 30, 2025; (2) a one-time provider lump-sum transitional payment; (3) a
https://lao.ca.gov/Publications/Report/4788