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

Feb 20, 2026 - For example, we recommend the Legislature: Do Not Suspend the $3  Billion True Up Into the Budget Stabilization Account (BSA). The Governor ’s budget proposes suspending a roughly $3  billion true-up deposit that otherwise would be required in 2025-26.
https://lao.ca.gov/Publications/Report/5133

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

Jan 12, 2026 - In  the budget window, for example, the administration proposes: (1)  reverting $71  million in unused EDDNext project funding early, and (2)  modifying In ‑Home Supportive Services (IHSS) eligibility to align with Medi ‑Cal, which provides $86  million in savings).
https://lao.ca.gov/Publications/Report/5101

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 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - How the Spending Plan Addresses the Budget Problem The state has several types of solutions —or options —for addressing a budget problem, but the most important include: reserve withdrawals, spending reductions, revenue increases, and borrowing (for example, loaning money from other funds to the General Fund).
https://lao.ca.gov/Publications/Report/5079

The 2025-26 Budget: Undertaking Fiscal Oversight

Feb 24, 2025 - Examples of these metrics are described in Figure  2. Figure 2
https://lao.ca.gov/Publications/Report/4983

Rethinking California's Reserve Policy

Apr 10, 2025 - For example, the cash in this account could be used to make loans to support infrastructure and housing. Loans from the fund could be actively managed to keep liquidity relatively high while managing downside risk.
https://lao.ca.gov/Publications/Report/5028

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

May 17, 2025 - That said, the Legislature could allocate the mix of solutions differently, for example, by changing the types of programs, types of reductions, or mix of spending and revenue solutions adopted. Introduction On May 14, 2025, Governor Newsom presented a revised state budget proposal to the Legislature.
https://lao.ca.gov/Publications/Report/5044

The 2025-26 Budget: Overview of the Governor's Budget

Jan 13, 2025 - Across the rest of the budget, the administration’s estimates of baseline spending (for example, for caseload growth, federal reimbursements, and statutory cost increases) are lower than ours by $600 million.
https://lao.ca.gov/Publications/Report/4951

The 2024-25 Budget: Initial Comments on the Governor’s May Revision

May 17, 2024 - For example, higher estimated caseload in the state ’s Medi-Cal program results in about $2  billion in higher costs across the budget window. How Does the Governor Propose Addressing the Deficit? Figure  1 summarizes the budget solutions that this section describes in detail.
https://lao.ca.gov/Publications/Report/4902

The 2025-26 Budget: California's Fiscal Outlook

Nov 20, 2024 - While out ‑year estimates are highly uncertain, we anticipate the Legislature likely will need to address deficits in the future, for example by reducing spending or increasing taxes. In our view, this year ’s budget does not have capacity for new commitments, particularly ones that are ongoing.
https://lao.ca.gov/Publications/Report/4939