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: Governor’s Sustainable Aviation Fuel Tax Credit Proposal

Feb 24, 2026 - There also are a number of other refiners in the United States that currently produce RD and could, with the purchase of some ad ditional equipment, be converted to produce SAF in addition to, or instead of, RD.
https://lao.ca.gov/Publications/Report/5139

The 2026-27 Budget: Child Welfare

Mar 3, 2026 - What do youth and families view as the most notable results or effects of the funding? What have been obstacles, challenges, or delays to implementation? To what extent and how have DSS and program partners been able to address these issues?
https://lao.ca.gov/publications/report/5147

The 2026-27 Budget: Cap-and-Invest Expenditure Plan

Feb 10, 2026 - In our view, it typically makes sense to try to maintain existing funding commitments. However, as we discuss in our January 2026 publication, The 2026‑27 Budget: Overview of the Governor’s Budget , the state faces alarming multiyear budget deficits, ranging from $20 billion to $35 billion annually.
https://lao.ca.gov/Publications/Report/5114

California Community Colleges Capital Outlay Projects [EdBudget]

Mar 10, 2026 - California Community Colleges Capital Outlay Projects [EdBudget]     a Community college districts issue local general obligation bonds to pay for a share of project costs. b Proposition 51 (2016) bond funds. c The performance criteria phase is the initial phase of this design-build project. d Replacement buildings listed in this category involve adding space. e Center operated
https://lao.ca.gov/Education/EdBudget/Details/1025

The 2026-27 Budget: How to Use One-Time Revenue Improvements

Feb 20, 2026 - Any additional resources that materialize at that time should be viewed as a one-time windfall. Despite Revenue Strength, Budget Relies on Reserves and Borrowing. This revenue upgrade comes in addition to already strong revenue growth forecasted in the Governor ’s budget.
https://lao.ca.gov/Publications/Report/5133

The 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - (In January and May, we had categorized settle up as a spending delay, but upon further deliberation, we view this action as borrowing.) Middle Class Scholarships (MCS) Arrears Budgeting ($1 Billion).
https://lao.ca.gov/Publications/Report/5079

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

Nov 15, 2024 - California's Legislative Analyst's Office and the Value of Independence Search In Fiscal Perspectives , the Legislative Analyst periodically offers the Legislature his views on fiscal matters facing California.
https://lao.ca.gov/Publications/Report/4938

The 2026-27 Budget: California Competes Extension

Mar 18, 2026 - Second, any unawarded credits from the previous fiscal year can be added to the pool of available credits for the current fiscal year. Credit Pool Has Ballooned to over $923  million for the Current Year.
https://lao.ca.gov/Publications/Report/5162

The 2026-27 Budget: California Public Utilities Commission’s Implementation of AB 1207

Feb 10, 2026 - In our view, making significant changes to the basic structure of the credit on a regular or ongoing basis is problematic. This is because frequent changes to the approach could increase customer confusion and make bills more unpredictable.
https://lao.ca.gov/Publications/Report/5120