California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - After the dot-com bust and the Great Recession, it took four and five years, respectively, for revenues to recover. Incorporating revenue risk into the budget now, therefore, reflects prudence, not pessimism.
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 2026-27 Budget: How to Use One-Time Revenue Improvements

Feb 20, 2026 - Figure 1 The State ’s New Wall of Debt (In Billions)
https://lao.ca.gov/Publications/Report/5133

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

Jan 12, 2026 - Implementing Immigrant Population ‑Related H.R. 1 Policies in Medi ‑Cal. As part of the state ’s required implementation of H.R. 1, the Governor proposes taking two discretionary actions related to immigrants that reduce state costs.
https://lao.ca.gov/Publications/Report/5101

Rethinking California's Reserve Policy

Apr 10, 2025 - In March of 2004, on the heels of the dot ‑com bust, voters passed Proposition  58, which created the Budget Stabilization Account (BSA). In the 2006 ‑07 budget, the Legislature deposited $472  million into the BSA and in 2007 ‑08 deposited $1.5  billion.
https://lao.ca.gov/Publications/Report/5028

The 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - Middle Class Scholarships (MCS) Arrears Budgeting ($1 Billion). The budget package reflects $1 billion in savings by deferring recognition of MCS program costs from 2025‑26 to 2026‑27 on a budgetary basis.
https://lao.ca.gov/Publications/Report/5079

Overview of Major Impacts of H.R. 1 – One Big Beautiful Bill Act [Publication Details]

Aug 20, 2025 - Overview of Major Impacts of H.R. 1 – One Big Beautiful Bill Act [Publication Details] Translate Our Website This Google ™ translation feature provided on the Legislative Analyst's Office (LAO) website is for informational purposes only.
https://lao.ca.gov/Publications/Detail/5067

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

May 17, 2025 - The 2025-26 Budget: Initial Comments on the Governor's May Revision Initial Comments on the Governor’s May Revision Appendix 1: General Fund Discretionary Spending Proposals in the 2025-26 May Revision
https://lao.ca.gov/Publications/Report/5044/1

Reserves, Proposition 2, and the Budget Stabilization Account (Panel 1) [Publication Details]

May 7, 2025 - Reserves, Proposition 2, and the Budget Stabilization Account (Panel 1) [Publication Details] Translate Our Website This Google ™ translation feature provided on the Legislative Analyst's Office (LAO) website is for informational purposes only.
https://lao.ca.gov/Publications/Detail/5040

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

May 17, 2025 - In addition, the administration includes roughly 70 other proposals, each with an estimated cost of less than $100  million. ( Appendix 1 provides a full listing of these items.) All Other Changes Improve Budget Bottom Line by $2   Billion.
https://lao.ca.gov/Publications/Report/5044