The 2025-26 Budget: California's Fiscal Outlook

Nov 20, 2024 - Instead, much of the bounce appears to be tied to special forms of pay for high ‑income workers, such as bonuses and stock  compensation. Booming Stock Market Driving Income Growth. The recent run ‑up in the stock market, which appears tied to optimism surrounding artificial intelligence, is a primary driver of the rapid growth in pay to high ‑income workers.
https://lao.ca.gov/Publications/Report/4939

The 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - The remaining $25  million was made available through June 2028 for grants to legal service providers as follows: $10  million to the judicial branch for indigent civil legal services for individuals likely to be impacted by potential or actual federal actions. $10  million to the Department of Social Services (DSS) for immigration ‑related legal
https://lao.ca.gov/Publications/Report/5079

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

Jan 12, 2026 - Ongoing, the Governor ’s spending ‑related solutions provide $5  billion in savings within a few years. Appendix 1 provides a list of the Governor ’s budget solutions. Generates $5.6 Billion School and Community College Settle‑Up Obligation in 2025‑26.
https://lao.ca.gov/Publications/Report/5101

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

Feb 20, 2026 - For example, we recommend the Legislature: Do Not Suspend the $3  Billion True Up Into the Budget Stabilization Account (BSA). The Governor ’s budget proposes suspending a roughly $3  billion true-up deposit that otherwise would be required in 2025-26.
https://lao.ca.gov/Publications/Report/5133

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

Rethinking California's Reserve Policy

Apr 10, 2025 - We first recommend the cap on constitutional reserve deposits be raised from 10  percent to 50  percent of General Fund taxes. The increase could be phased in over time: 20  percent to take effect immediately after the next statewide election, 25  percent in 2030, and increasing by 5  percent every five years until the cap reaches a maximum of 50  percent in 2055.
https://lao.ca.gov/Publications/Report/5028

The 2022-23 Budget: Fiscal Outlook for Schools and Community Colleges

Nov 17, 2021 - The Legislature and Governor previously agreed to ramp up ongoing funding over the next four years —from $1 billion in 2021 ‑22 to about $5 billion by 2025 ‑26. The state could accelerate this schedule, which would give districts more certainty about their funding levels and potentially improve local planning for these  programs.
https://lao.ca.gov/Publications/Report/4473

The 2024-25 Budget: Overview of the Governor's Budget

Jan 13, 2024 - Under our definition, a spending reduction occurs when the Governor proposes the state spend less money than what has been established under current law or policy. More colloquially, these are spending cuts.
https://lao.ca.gov/Publications/Report/4825

The 2022-23 Budget: State Appropriations Limit Implications

Mar 30, 2022 - For example, the Legislature can delay paying SAL requirements (for up to two years), change the definition of subventions, and/or reject nearly $10  billion in Governor ’s budget proposals and save those funds to meet future SAL requirements.
https://lao.ca.gov/Publications/Report/4583

The 2024-25 Budget: Overview of the Spending Plan

Sep 6, 2024 - Second, it notably reduces how much tax revenue is used for augmentations, instead using more money to help offset General Fund spending ($3.5  billion through 2024 ‑25 and $7.7  billion through 2026 ‑27).
https://lao.ca.gov/Publications/Report/4922