The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - The 2026-27 Budget: California's Fiscal Outlook Executive Summary Not Safe to Bet Artificial Intelligence ( AI) Fueled Exuberance Is Sustainable. Both the California and U.S. economies currently face significant headwinds.
https://lao.ca.gov/Publications/Report/5091

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

Jan 12, 2026 - That said, recent budgets have set the SFEU bet ween $3.5  billion and $4.5  billion, so the Governor ’s budget proposal to set the balance to $4.5  billion is generally in line with recent policy.
https://lao.ca.gov/Publications/Report/5101

Rethinking California's Reserve Policy

Apr 10, 2025 - Create New, More Robust and Flexible Deposit Rules The Legislature could first consider asking voters to replace Proposition 2’s existing framework for deposit rules with something entirely different.
https://lao.ca.gov/Publications/Report/5028

The 2021-22 Budget: The Governor’s Proposition 2 Proposals

Apr 26, 2021 - First, it created new rules for minimum annual deposits into the Budget Stabilization Account (BSA), the state ’s rainy-day fund. Second, Proposition  2 created new requirements that the state spend a minimum amount each year, until 2030, to pay down specified debts.
https://lao.ca.gov/Publications/Report/4418

The 2021-22 Budget: The Governor’s Suspension Proposal

Jan 29, 2021 - In the past, courts have issued temporary injunctions preventing the state from making reductions to Medicaid personal care services programs, including IHSS, due to possible violation of federal Medicaid and ADA rules.
https://lao.ca.gov/Publications/Report/4328

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

Jan 13, 2025 - The Governor ’s budget proposes to change the rules about how taxable profits are determined for financial institutions. The administration estimates this change would increase revenues on an ongoing basis by around $300  million per year.
https://lao.ca.gov/Publications/Report/4951

Whether or Not to Tap Reserves to Solve Estimated Budget Problem Emerges as Key Fiscal Decision Facing California’s Legislature

Apr 19, 2023 - A final complication is the state ’s conformity to the federal Internal Revenue Service rule change that, as a response to the January floods, delayed the 2022 tax filing deadline to October from April.
https://lao.ca.gov/Publications/Report/4762

The 2022-23 Budget: Medi-Cal Fiscal Outlook

Nov 17, 2021 - Second, we estimate $140 million in net General Fund savings due to our assumption that certain program rules related to the PHE remain in place through March 2022 (the end of the quarter during which the PHE expires)—rather than through December 2021 as was assumed in the budget act.
https://lao.ca.gov/Publications/Report/4474

The 2023-24 Budget: Multiyear Budget Outlook

May 23, 2023 - These formulas include spending on schools and community colleges (under Proposition  98 [1988]), as well as debt payments and reserve deposits (under the rules of Proposition  2  [2014]). If the Legislature adopts the administration ’s revenue estimates —and does not solve the additional budget problem we identify above —we anticipate there will be a revenue shortfall in 2023 ‑24.
https://lao.ca.gov/Publications/Report/4772

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

May 16, 2022 - This year, the concept of the surplus is more complicated because the state appropriations limit (SAL), under the rules of Proposition  4, constrains how the Legislature can allocate revenues that exceed a specific threshold.
https://lao.ca.gov/Publications/Report/4598