The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - The 2026-27 Budget: California's Fiscal Outlook Executive Summary Not Safe to Bet Artificial Intelligence ( AI) Fueled Exuberance Is Sustainable. Both the California and U.S. economies currently face significant headwinds.
https://lao.ca.gov/Publications/Report/5091

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

Jan 12, 2026 - Both our office and the administration expect the state to face multiyear deficits, with estimates ranging from $20  billion to $35  billion annually. These deficits are concerning for three reasons.
https://lao.ca.gov/Publications/Report/5101

Rethinking California's Reserve Policy

Apr 10, 2025 - If the Legislature adopts a reserve policy that performs well in half of scenarios but poorly in the other half (that is, we use the median scenario as a benchmark), it would mean there is something like a coin ‑flip chance that the policy would achieve its desired outcomes.
https://lao.ca.gov/Publications/Report/5028

The 2021-22 Budget: Overview of the Governor's Budget

Jan 10, 2021 - For example, how would the administration implement and continue to refine CalAIM in coordination with other major statewide planning initiatives, including the Master Plan for Aging, the Behavioral Health Task Force, and other state efforts related to homelessness?
https://lao.ca.gov/Publications/Report/4309

The 2022-23 Budget: Overview of the Governor's Budget

Jan 13, 2022 - The Legislature could use the funding it frees up from funding fewer proposals to address district cost pressures (such as rising pension costs), or it could set this funding aside in the Proposition  98 Reserve for future allocation.
https://lao.ca.gov/Publications/Report/4492

California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - Given that this deficit is estimated to range from $20  billion to $35  billion in the years ahead, addressing it gradually, rather than all at once, reduces fiscal disruption and more readily provides for legislative input and flexibility.
https://lao.ca.gov/Publications/Report/5104

The 2025-26 Budget: Overview of the Governor's Budget

Jan 13, 2025 - The Governor has signaled interest in changing the state ’s reserve policy by: (1)  increasing the cap on BSA required deposits from 10  percent of General Fund taxes to 20  percent of General Fund taxes, and (2)  excluding the state ’s reserve deposits from the state appropriations limit.
https://lao.ca.gov/Publications/Report/4951

The 2022-23 California Spending Plan: Other Provisions

Sep 27, 2022 - The remaining $1  million will be used to expand a free adaptive learning homework system. $10  Million for Golden State Awards. The budget provides $10  million General Fund in 2022-23 to establish the Golden State Awards program.
https://lao.ca.gov/Publications/Report/4626

The 2021-22 Budget: Initial Comments on the Governor’s May Revision

May 17, 2021 - (We also include links to Appendix tables at the end of this post and the top left of this page. These appendix tables itemize select proposals by policy area based on our understanding at this time.)
https://lao.ca.gov/Publications/Report/4432

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

Nov 17, 2021 - These allocations expire in 2022 ‑23, freeing ‑up the underlying funds. An additional $1.8  billion is available from reductions in costs due to lower attendance. Regarding cost increases, we account for previous commitments, the required reserve deposit, and the 5.35 percent COLA.
https://lao.ca.gov/Publications/Report/4473