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

May 17, 2025 - Overall, our assessm ent of the state’s budget condition for 2025‑26 is very similar to that of the administration’s assessment—namely, since January, when the budget was roughly balanced, a budget problem has emerged.
https://lao.ca.gov/Publications/Report/5044

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

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - We advise the Legislature to address the budget problem through a combination of ongoing solutions —namely , achievable spending reductions and/or revenue increases. There are three reasons these actions are now critical.
https://lao.ca.gov/Publications/Report/5091

The 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - During the special session, the Legislature added Control Sections 90.00 and 90.01 to the 2024 ‑25 Budget Act providing up to $2.5  billion one ‑time for response and recovery costs related to the January 2025 Southern California wildfires.
https://lao.ca.gov/Publications/Report/5079

The 2025-26 Budget: Undertaking Fiscal Oversight

Feb 24, 2025 - Meanwhile, revenue growth over the outlook window is just above 4  percent —this is lower than its historical average largely due to policy choices, namely the limitations on deductions and credits that end during the forecast window.
https://lao.ca.gov/Publications/Report/4983

California's Legislative Analyst's Office and the Value of Independence

Nov 15, 2024 - As such, our independent fiscal assessment underlies the Legislature ’s ability to assert an informed check on the executive branch, making any added complexity from diverging estimates a worthwhile trade-off.
https://lao.ca.gov/Publications/Report/4938

Rethinking California's Reserve Policy

Apr 10, 2025 - Namely, volatility can jeopardize the state ’s ability to maintain a consistent level of programmatic services over time. That said, both the Legislature and voters have indicated, through various policies enacted over the last decade, that their preference is to address these risks not by reforming the revenue structure, but by building reserves.
https://lao.ca.gov/Publications/Report/5028

The 2024-25 California Spending Plan: Other Provisions

Oct 2, 2024 - The budget package retains the remaining OPR programs together and establishes a new name for the office. The major responsibilities maintained within this office include the Strategic Growth Council, climate resilience grant programs, and land-use planning activities.
https://lao.ca.gov/Publications/Report/4934

The 2024-25 California Spending Plan: Other Provisions

Oct 2, 2024 - The budget package retains the remaining OPR programs together and establishes a new name for the office. The major responsibilities maintained within this office include the Strategic Growth Council, climate resilience grant programs, and land-use planning activities.
https://lao.ca.gov/Publications/Report/4934/governors-office-of-emergency-services

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