California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - Given that this deficit is estimated to range from $20  billion to $35  billion in the years ahead, addressing it gradually, rather than all at once, reduces fiscal disruption and more readily provides for legislative input and flexibility.
https://lao.ca.gov/Publications/Report/5104

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

Jan 12, 2026 - Both our office and the administration expect the state to face multiyear deficits, with estimates ranging from $20  billion to $35  billion annually. These deficits are concerning for three reasons.
https://lao.ca.gov/Publications/Report/5101

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - Starting in 2027 ‑28, we estimate structural deficits to grow to about $35  billion annually due to spending growth continuing to outstrip revenue growth. Budget Position Is Weak. We advise the Legislature to address the budget problem through a combination of ongoing solutions —namely , achievable spending reductions and/or revenue increases.
https://lao.ca.gov/Publications/Report/5091

The 2024-25 California Spending Plan: Other Provisions

Oct 2, 2024 - Chapter 35 of 2024 (SB 108, Wiener) requires the Government Operations Agency (GovOps) to establish monthly meetings with legislative staff to discuss implementation of EO N-12-23 , the state’s first EO on GenAI.
https://lao.ca.gov/Publications/Report/4934

The 2024-25 California Spending Plan: Other Provisions

Oct 2, 2024 - Chapter 35 of 2024 (SB 108, Wiener) requires the Government Operations Agency (GovOps) to establish monthly meetings with legislative staff to discuss implementation of EO N-12-23 , the state’s first EO on GenAI.
https://lao.ca.gov/Publications/Report/4934/governors-office-of-emergency-services

The 2022-23 Budget: Initial Comments on the Governor's May Revision

May 16, 2022 - Governor Allocates $35   Billion in Overall Surplus to Address SAL Requirements. The Governor ’s May Revision includes $35  billion in discretionary General Fund proposals that meet SAL requirements across 2021 ‑22 and 2022 ‑23.
https://lao.ca.gov/Publications/Report/4598

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

May 17, 2025 - Major proposals include shifting $1.5  billion in California Department of Forestry and Fire Protection operational costs to the Greenhouse Gas Reduction Fund, using $1.3  billion in Proposition  35 (2024) revenues to support base growth in Medi ‑Cal, and moving roughly $300  million in climate ‑related project costs to the Proposition  4 climate bond (about $270  million of which was initially proposed in January).
https://lao.ca.gov/Publications/Report/5044

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

Oct 16, 2023 - The  spending plan includes $401   million in one ‑time funding in 2023 ‑24 ($374   million from the General Fund and $27   million from bond funds) for flood management and response activities, along with intent to provide an additional $35   million General Fund in 2024 ‑25.
https://lao.ca.gov/Publications/Report/4788

The 2021-22 Budget: Overview of the Spending Plan (Final Version)

Oct 27, 2021 - Additionally, the budget provides $ 150 m illion in one ‑time funds for food bank infrastructure assistance and increases ongoing funding levels for senior nutrition programs to $ 35 m illion General  Fund.
https://lao.ca.gov/Publications/Report/4448

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

Jan 13, 2025 - The reason for the reduction is the recent voter approval of Proposition  35 (2024), which requires the state to spend less MCO tax money on offsetting General Fund spending and more money on provider rate increases.
https://lao.ca.gov/Publications/Report/4951