The 2026-27 Budget: In-Home Supportive Services

Mar 18, 2026 - As seen in Figure  7 , the 2019 IHSS MOE reduced the base county costs in 2019 ‑20 to roughly $1.6  billion, decreasing IHSS county costs by roughly $300  million relative to 2018 ‑19. The 2019 IHSS MOE was also set to increase annually by (1)  the counties ’ share of costs from locally negotiated wage increases and (2)  an annual adjustment factor of  4  percent.
https://lao.ca.gov/Publications/Report/5166

How Have Past Stock Market Downturns Affected Income Tax Revenue? [EconTax Blog]

Mar 9, 2026 - By most measures, the global financial crisis was more severe than the dot-com crash. The state 's unemployment rate, for example, peaked at 7 percent following the dot-com crash but reached nearly double that during the financial crisis and remained elevated for much longer.
https://lao.ca.gov/LAOEconTax/Article/Detail/852

How Have Past Stock Market Downturns Affected Income Tax Revenue? [EconTax Blog]

Mar 9, 2026 - By most measures, the global financial crisis was more severe than the dot-com crash. The state 's unemployment rate, for example, peaked at 7 percent following the dot-com crash but reached nearly double that during the financial crisis and remained elevated for much longer.
https://lao.ca.gov/LAOEconTax/article/Detail/852

The 2026-27 Budget: Child Welfare

Mar 3, 2026 - The administration estimates that implementing the Tiered Rate Structure will cost more than $300  million General Fund in 2027-28, $500  million in 2028-29, and $700  million General Fund in 2029-30 (with some potential growth thereafter and ongoing).
https://lao.ca.gov/publications/report/5147

The 2026-27 Budget: Supplemental Security Income/State Supplementary Payment (SSI/SSP) Program

Mar 3, 2026 - Statute required the Department of Finance to estimate what percentage grant increase could be supported by a half-year cost of $291  million in 2021-22 (estimated to be about $580  million in 2022-23), a half-year cost of $150  million in 2022-23 (estimated to be about $300  million in 2023-24), and a half-year cost of $146  million in 2023-24 (estimated to be about $292  million in 2024-25).
https://lao.ca.gov/Publications/Report/5148

The 2026-27 Budget: Medi-Cal Analysis

Mar 2, 2026 - Under Proposition  35, the state must spend $300  million each in 2025 and 2026 on behavioral health ‑related services. As part of the 2025 ‑26 budget, the administration developed an initial spending plan focused on data sharing and housing subsidies.
https://lao.ca.gov/Publications/Report/5146

The 2026-27 Budget: Governor’s Sustainable Aviation Fuel Tax Credit Proposal

Feb 24, 2026 - Additionally, the administration projects the credit could grow over time, potentially reaching about $300  million annually —nearly doubling the reductions and corresponding fiscal and programmatic impacts.
https://lao.ca.gov/Publications/Report/5139

The 2026-27 Budget: Higher Education Overview

Feb 5, 2026 - Specifically, the state would commit to providing CSU and UC combined with $525  million one ‑time General Fund in 2027 ‑28 and nearly $300  million ongoing General Fund in 2028 ‑29. These commitments stem from the state not providing the full year ‑four compact payment in 2025 ‑26.
https://lao.ca.gov/Publications/Report/5112

The 2026-27 Budget: Proposition 98 Guarantee and K-12 Spending Plan

Feb 4, 2026 - It made an initial payment of $300  million but did not schedule any future payments. It paid the remaining amount over the 2015 ‑16 through 2018 ‑19 period. Most recently, the June 2025 budget recognized an increase in the 2024 ‑25 guarantee but set school funding $1.9  billion below the revised estimate.
https://lao.ca.gov/Publications/Report/5110

California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - After the dot-com bust and the Great Recession, it took four and five years, respectively, for revenues to recover. Incorporating revenue risk into the budget now, therefore, reflects prudence, not pessimism.
https://lao.ca.gov/Publications/Report/5104