The 2025-26 Budget: Undertaking Fiscal Oversight

Feb 24, 2025 - The Legislature can first assess whether the problem addressed by the program is well defined. For example, is the program aimed at a well-understood gap or market failure? Does the problem still exist in the way it did when the program was created?
https://lao.ca.gov/Publications/Report/4983

With New Deficits Looming, California Will Weigh its Options for Allocating a Large Revenue Windfall

Dec 1, 2020 - Prudently managed, this fiscal cushion can buy time for the Legislature to phase-in policy changes while simultaneously allowing it to protect legislative priorities. Subscribe | California State Legislature | Online Voter Registration | Privacy Policy | Accessibility Legislative Analyst's Office | The California Legislature's Nonpartisan Fiscal and Policy Advisor 925 L Street, Suite 1000 Sacramento, CA 95814 | (916) 445-4656
https://lao.ca.gov/Publications/Report/4305

The 2023-24 Budget: Considering Inflation's Effects on State Programs

Nov 16, 2022 - Real Value The real value of a dollar refers to the amount of goods and services that dollar can buy. Over  time, the real value of a dollar decreases due to inflation. For example, suppose the state spends $100,000 to provide services to ten people.
https://lao.ca.gov/Publications/Report/4647

The 2023-24 Budget: Multiyear Assessment

Feb 15, 2023 - That  said, after adjusting for inflation, anticipated revenues for 2023 ‑24 still would remain about 20  percent higher than before the pandemic. Governor ’s Budget Likely Unaffordable in Future Years.
https://lao.ca.gov/Publications/Report/4687

Rethinking California's Reserve Policy

Apr 10, 2025 - Although this is a clear improvement over current law, it also implies that, even under the Governor’s proposal, either reductions to core services or tax increases would still be common. In our view, this means more improvements are warranted.
https://lao.ca.gov/Publications/Report/5028

The 2024-25 Budget: Deficit Update

Feb 20, 2024 - Other tools, like reserve withdrawals and cost shifts, also can be used only once, but at any time. Saving them to deploy in the future can help the Legislature avoid cuts to ongoing services —which involve very difficult decisions.
https://lao.ca.gov/Publications/Report/4850

The 2023-24 Budget: Initial Comments on the Governor's May Revision

May 15, 2023 - The state has two main constitutional reserve accounts: the Budget Stabilization Account (BSA), which can help address a budget problem, and the School Reserve, which can supplement otherwise required spending on schools and community colleges (and cannot help address the budget problem).
https://lao.ca.gov/Publications/Report/4769

The 2022-23 Budget: State Appropriations Limit Implications

Mar 30, 2022 - While the Legislature could still reallocate funds among programs —for example, by spending less in one area, it could make expansions in another —further expansions to programs not coupled with such reductions would not be feasible.
https://lao.ca.gov/Publications/Report/4583

The 2023-24 Budget: State Appropriations Limit Estimates

Feb 1, 2023 - One concern is whether or not the state can reduce additional exclud ed spending in order to address the budget problem without incurring a SAL requirement. The administration ’s estimates suggest the Legislature could reduce some additional excluded spending in 2022-23 or 2023-24.
https://lao.ca.gov/Publications/Report/4667

COVID-19 and California’s Evolving Fiscal Outlook

Mar 18, 2020 - Earlier this week the Legislature provided the administration additional resources and authority to ensure the state can effectively respond. Similarly, there is a marshaling of resources occurring at the federal level that should offer support to the economy and the state ’s fiscal situation.
https://lao.ca.gov/Publications/Report/4203