California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - Whereas California’s labor market has stagnated over the last two years, the S&P 500 stock index has appreciated roughly 50 percent over the same period. And most of this increase has come from skyrocketing share prices among a handful of firms associated with innovations in Artificial Intelligence (AI).
https://lao.ca.gov/Publications/Report/5104

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - The stock market (S &P 500) has risen 50  percent in the last two years. Most of these gains come from the meteoric rise in the value of a handful of tech companies that investors believe will be major beneficiaries of recent advances in AI.
https://lao.ca.gov/Publications/Report/5091

The State Appropriations Limit

Apr 21, 2021 - According to data from 2018 ‑19, only 6 c ounties ( 10  p ercent) and 68 c ities ( 14  p ercent) have spending that is above 80  p ercent of their limits. A substantial majority of cities and counties ( 82  p ercent of counties and 70  p ercent of cities) have spending at or below 60  p ercent of their limits.
https://lao.ca.gov/Publications/Report/4416

The 2021-22 Budget: Overview of the Spending Plan (Final Version)

Oct 27, 2021 - In addition, 65 p ercent of funding in 2021 ‑ 22 i s federal, while 35 p ercent is state funding. Some of the major uses of housing and homelessness funding in the budget would support the Homekey Program ’s acquisition of properties for use as permanent housing, provide flexible aid to local governments to address homelessness in their communities, provide
https://lao.ca.gov/Publications/Report/4448

The 2025-26 Budget: California's Fiscal Outlook

Nov 20, 2024 - Furthermore, a single company (Nvidia) accounts for about one ‑third of the total gains in the S &P 500 stock index over the last year. Overall, without more positive signs from the broader California economy, it is difficult to be highly confident in the recent revenue recovery.
https://lao.ca.gov/Publications/Report/4939

The 2022-23 Budget: Fiscal Outlook for Schools and Community Colleges

Nov 17, 2021 - Accelerate Expanded Learning Opportunities Program (ELO ‑P). The state created ELO ‑P in the 2021 ‑22 budget to fund before/after school programs and summer programs for students in Transitional Kindergarten through grade 6.
https://lao.ca.gov/Publications/Report/4473

The 2021-22 Budget: The Governor’s Suspension Proposal

Jan 29, 2021 - If the current law suspensions went into effect, the state would reinstate a 7  p ercent reduction to service hours. The nearby box describes some potential legal challenges that could arise if this occurred.
https://lao.ca.gov/Publications/Report/4328

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

Jan 10, 2021 - The Legislature will want to consider whether the proposal provides sufficient time for planning and whether the schools and p ublic health agencies have the capacity to effectively implement the requirements under the time lines specified.
https://lao.ca.gov/Publications/Report/4309