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

Feb 20, 2026 - The 2026-27 Budget: How to Use One-Time Revenue Improvements The 2026-27 Budget How to Use One-Time Revenue Improvements Recent stock market performance continues to boost income tax collections. In our Fiscal Outlook , we strongly advised the Legislature to treat near-term strength in tax collections as temporary because we expect these gains to reverse.
https://lao.ca.gov/Publications/Report/5133

The 2026-27 Budget: How to Use One-Time Revenue Improvements [Publication Details]

Feb 20, 2026 - The 2026-27 Budget: How to Use One-Time Revenue Improvements [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/5133

The 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - As of this writing, DOF is still working on identifying the list of those funds to borrow from to achieve this target. Proposition   98 “Settle Up ” ($1.9   Billion). Proposition  98 (1988) sets a minimum funding requirement for schools and community colleges based on formulas in the State Constitution.
https://lao.ca.gov/Publications/Report/5079

California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - The added risk variable weighs on the range of revenue outcomes that we view as most plausible. The middle of the range, which becomes our main revenue forecast, is thus lower than if we did not include the stock market risk indicator.
https://lao.ca.gov/Publications/Report/5104

California’s Strong Revenue Trends Mask Looming Budget Risk [Publication Details]

Jan 23, 2026 - In this installment of Fiscal Perspectives, the Legislative Analyst describes how the LAO’s revenue estimates represent a hedge against downside stock market risk and why—despite current cash trends—caution matters given the state’s large, ongoing structural deficit.
https://lao.ca.gov/Publications/Detail/5104

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

May 17, 2025 - Finally, although we have not previously recommended the Leg islature take decisive action to address the structural deficits, the state ’s persistent fiscal imbalance and the added downside risks —particularly from potential federal actions —suggest a need for a more proactive approach.
https://lao.ca.gov/Publications/Report/5044

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

Jan 12, 2026 - The second would extend new eligibility rules (such as work requirements) for certain federally funded population s to additional immigrant groups with state ‑only ‑funded comprehensive coverage. The proposals reduce costs by around $900  million in 2026 ‑27, with savings in future years ramping up to a few billion dollars annually.
https://lao.ca.gov/Publications/Report/5101

The 2021-22 California Spending Plan: The State Appropriations Limit

Aug 30, 2021 - For more information on how the SAL works, please see our April 2021 report: The State Appropriations Limit. This post describes the legislative and administrative decisions regarding the SAL in the 2021 ‑22 budget process.
https://lao.ca.gov/Publications/Report/4449

Rethinking California's Reserve Policy

Apr 10, 2025 - How Does Proposition   2 Help the State Build Reserves? Figure  4 shows how Proposition  2 deposit rules work. The measure has two main parts. First, it requires the state to set aside 1.5 percent of total General Fund revenues (we refer to this as the “base amount”).
https://lao.ca.gov/Publications/Report/5028

The 2025-26 Budget: California's Fiscal Outlook

Nov 20, 2024 - Outside of government and health care, the state has added no jobs in a year and a half. Similarly, the number of Californians who are unemployed is 25  percent higher than during the strong labor markets of 2019 and 2022.
https://lao.ca.gov/Publications/Report/4939