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: Overview of the Governor's Budget

Jan 12, 2026 - Some of the largest spending augmentations proposed for the budget window include: (1) $76 million for utility replacement and site improvements at Exposition Park, (2) $67 million to the California Department of Forestry and Fire Protection for fixed‑wing aircraft pilot and mechanics contract increases, (3) $60 million to the Department of Health Care Access and Information for a reproductive
https://lao.ca.gov/Publications/Report/5101

Rethinking California's Reserve Policy

Apr 10, 2025 - We put forward two recommendations to improve reserve policy: Raise the Reserve Cap to 50   Percent by 2055. We first recommend the cap on constitutional reserve deposits be raised from 10  percent to 50  percent of General Fund taxes.
https://lao.ca.gov/Publications/Report/5028

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 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - During the special session, the Legislature amended existing Control Section 5.25 and also added Control Section 5.26 to the 2024 ‑25 Budget Act , providing a total of up to $50  million one ‑time General Fund for legal and administrative activities that address federal actions impacting the state.
https://lao.ca.gov/Publications/Report/5079

The 2023-24 Budget: Overview of the Spending Plan (Final Version)

Oct 16, 2023 - Note: Includes augmentations above $50 million BCSH = Secretary for Business, Consumer Services, and Housing Agency and HCD = Department of Housing and Community Development. Appendix 4, Figure 5 Remaining Large One ‑Time and Temporary Augmentations From the 2021 ‑22 and 2022 ‑23 Budget Packages: Other General Fund (In millions) Broadband infrastructure —last ‑mile
https://lao.ca.gov/Publications/Report/4788/4

The 2024-25 California Spending Plan: Other Provisions

Oct 2, 2024 - The spending plan provides an additional three years of expenditure authority for these 50 positions, from 2024-25 to 2026-27, in the amount of $9.4 million from CPUC’s Utilities Reimbursement Account.
https://lao.ca.gov/Publications/Report/4934

The 2024-25 California Spending Plan: Other Provisions

Oct 2, 2024 - The spending plan provides an additional three years of expenditure authority for these 50 positions, from 2024-25 to 2026-27, in the amount of $9.4 million from CPUC’s Utilities Reimbursement Account.
https://lao.ca.gov/Publications/Report/4934/governors-office-of-emergency-services

The 2024-25 Budget: Overview of the Spending Plan

Sep 6, 2024 - For community colleges, the budget also provides (1)  $50  million ongoing for caseload increases in the Student Success Completion Grant program and (2)  $25  million ongoing to increase enrollment by 0.5  percent.
https://lao.ca.gov/Publications/Report/4922

The 2023-24 Budget: Multiyear Assessment

Feb 15, 2023 - There is about a 50‑50 chance the state can afford its ongoing spending level. Using reserves now to maintain the recent spending peak would mean the state would have less reserves available to pay for its core services if revenues declined further or in the event of a recession.
https://lao.ca.gov/Publications/Report/4687