The 2026-27 Budget: Child Care and State Preschool

Mar 19, 2026 - As part of the 2021‑22 budget package, the Legislature and Governor agreed to add 206,800 non‑CalWORKs child care slots over a multiyear period. To date, the state has funded 129,800 additional slots—a 113.8 percent increase in non‑CalWORKs slots compared to 2020‑21 levels.
https://lao.ca.gov/Publications/Report/5168

The 2026-27 Budget: Re-Envisioning State Education Governance

Mar 18, 2026 - This  shift would free up the SBE to focus on broader policy issues while making state administrative functions more efficient. Considering Adding Legislative Appointees to the SBE. The Legislature could consider adding two legislative appointees to the SBE.
https://lao.ca.gov/Publications/Report/5165

The 2026-27 Budget: Contract to Achieve Operational Efficiencies

Mar 10, 2026 - However, the administration indicates that the work could have other benefits, such as improving the quality of health care or reducing unnecessarily bureaucratic processes, thereby freeing up staff time to address other workload.
https://lao.ca.gov/Publications/Report/5156

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

Mar 9, 2026 - This Time Might Be Different, but It Is Not Safe to Bet on It.   As our office warned last November, it now appears time to take seriously the notion that the stock market has become overheated. While there is a chance that this time is different and no such downturn is forthcoming, the risk appears strong enough that we have incorporated it into the state 's revenue outlook.  
https://lao.ca.gov/LAOEconTax/Article/Detail/852

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

Mar 9, 2026 - This Time Might Be Different, but It Is Not Safe to Bet on It.   As our office warned last November, it now appears time to take seriously the notion that the stock market has become overheated. While there is a chance that this time is different and no such downturn is forthcoming, the risk appears strong enough that we have incorporated it into the state 's revenue outlook.  
https://lao.ca.gov/LAOEconTax/article/Detail/852

The 2026-27 Budget: California Community Colleges

Mar 5, 2026 - The one‑time spending will expire in 2027‑28, freeing up funds that could help the state accommodate a possible decrease in the minimum guarantee before having to reduce programs. Under the Governor’s budget, the amount of the cushion is $241 million, equating to 1.7 percent of Proposition 98 spending on the community colleges in 2026‑27.
https://lao.ca.gov/Publications/Report/5150

The 2026-27 Budget: Proposed Zero-Emission Vehicle Incentive

Feb 24, 2026 - Additionally, APCF potentially could be used to support some activities currently being funded with GGRF, thereby freeing up those dollars to help fund other priorities. ZEV Proposal Does Not Meet High Bar for New Expenditures.
https://lao.ca.gov/Publications/Report/5140

Addressing Chronic Vacancies in Prison Mental Health Care

Feb 23, 2026 - In addition, the Receiver ’s plan would also increase the pool of people that can provide services to the mental health population by expanding clinical internship slots across the prisons. Not only will interns perform work while part of the program, but it is also possible that they will become employed permanently by CDCR.
https://lao.ca.gov/Publications/Report/5134

The 2026-27 Budget: California Department of Corrections and Rehabilitation

Feb 23, 2026 - We recommend that the Legislature direct the department to report in spring budget hearings on what specific steps it is taking in the current year and is considering or planning to take in the budget year to free up funding to address the shortfall, the size of the shortfall, and what unbudgeted costs currently makeup the shortfall.
https://lao.ca.gov/Publications/Report/5137

The 2026-27 Budget: K-12 Proposals

Feb 19, 2026 - Frees Up Current Funding for Extension Grants. Trailer legislation proposes to free up the $485  million allocated in prior budgets that is set aside for the two ‑year extension grants. Current community schools grantees would no longer be required to submit requests for extensions.
https://lao.ca.gov/Publications/Report/5131