California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - As we described in our November Fiscal Outlook , the recent stronger-than-expected revenue trends are almost entirely explained by the personal income tax (PIT), which has seen double digit growth this year.
https://lao.ca.gov/Publications/Report/5104

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - Despite this, income tax collections have been strong in recent months, growing at double‑digit rates. These strong income tax collections are being driven by enthusiasm around AI, which has pushed the stock market to record highs and boosted compensation among the state’s tech workers.
https://lao.ca.gov/Publications/Report/5091

The 2025-26 Budget: California's Fiscal Outlook

Nov 20, 2024 - While the budget picture is fair for the upcoming year, our outlook suggests that the state faces double ‑digit operating deficits in the years to come. By historical standards, spending growth in this year ’s outlook is high.
https://lao.ca.gov/Publications/Report/4939

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

Jan 13, 2024 - The 2024-25 Budget: Overview of the Governor's Budget $3,135 $4,677 BCH = Secretary for Business, Consumer Services, and Housing Agency; HHAPP = Homeless Housing, Assistance, and Prevention Program; FHC = Family Homelessness Challenge Grants; BSCC  =  Board of State and Community Corrections; CalFire = California Department of Forestry and Fire Protection; CalRecycle = California Department of
https://lao.ca.gov/Publications/Report/4825/1

The 2023-24 Budget: Multiyear Budget Outlook

May 23, 2023 - (This would add to the double ‑digit budget problem for 2024 ‑25 already projected under both our and the administration ’s estimates, as we describe below.) LAO Spending Estimates Over $10   Billion Higher Than the Administration by 2026 ‑27.
https://lao.ca.gov/Publications/Report/4772

The 2023-24 Budget: Initial Comments on the Governor's May Revision

May 15, 2023 - CARB = California Air Resources Board; BHC= Baldwin Hills Conservancy; CalRecycle = California Department of Resources, Recycling and Recovery; CalFire = California Department of Forestry and Fire Protection; CCC = California Conservation Corps; CNRA = California Natural Resources Agency; CPUC = California Public Utilities Commission; CVC = Coachella Valley Conservancy; DFW = D
https://lao.ca.gov/Publications/Report/4769/1

The 2024-25 Budget: Deficit Update

Feb 20, 2024 - (In some cases, however, further disbursements could occur between now an d May, such smaller amounts would be available for reduction at that time.) Figure 1 Summary of Possible Remaining One ‑Time and Temporary Spending (In Millions)
https://lao.ca.gov/Publications/Report/4850

The 2023-24 California Spending Plan: Other Provisions

Nov 8, 2023 - Under the progressive design-build procurement process, a single entity typically designs and constructs a project, an d the construction price is determined through negotiation. (The Delta conveyance project and desalination projects are exempted from this authority.)
https://lao.ca.gov/Publications/Report/4814

The 2024-25 California Spending Plan: Other Provisions

Oct 2, 2024 - The 2024-25 California Spending Plan: Other Provisions $4,850 $7,787 a Chapter 189 of 2023 (SB 104, Skinner) appropriated $73 million FF from the IIJA ’s Enabling Middle Mile Infrastructure program in 2023 ‑24. b Chapter 48 of 2022 (SB 189, Committee on Budget and Fiscal Review) included a legislative goal to appropriate $250 million GF in 2024 ‑25 for the middle ‑mile network. c Last ‑mile
https://lao.ca.gov/Publications/Report/4934

The 2024-25 California Spending Plan: Other Provisions

Oct 2, 2024 - The 2024-25 California Spending Plan: Other Provisions $4,850 $7,787 a Chapter 189 of 2023 (SB 104, Skinner) appropriated $73 million FF from the IIJA ’s Enabling Middle Mile Infrastructure program in 2023 ‑24. b Chapter 48 of 2022 (SB 189, Committee on Budget and Fiscal Review) included a legislative goal to appropriate $250 million GF in 2024 ‑25 for the middle ‑mile network. c Last ‑mile
https://lao.ca.gov/Publications/Report/4934/governors-office-of-emergency-services