The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - As shown in Figure  1 , many signs of an overly exuberant stock market are present today: measures of whether stocks are “expensive ” are at historically high levels, investors are borrowing more to buy stocks, and households are more invested in the stock market than they have been in at least 70  years.
https://lao.ca.gov/Publications/Report/5091

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

Jan 12, 2026 - That said, recent budgets have set the SFEU bet ween $3.5  billion and $4.5  billion, so the Governor ’s budget proposal to set the balance to $4.5  billion is generally in line with recent policy.
https://lao.ca.gov/Publications/Report/5101

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

Jan 13, 2025 - The underlying budget dynamics today are particularly challenging for three reasons. First, revenues have not caught up with expenditures. Second, under our estimates, expenditure growth exceeds estimated revenue growth.
https://lao.ca.gov/Publications/Report/4951

The 2025-26 Budget: Initial Comments on the Governor's May Revision

May 17, 2025 - We begin by reviewing the evolution of the budget condition, detailing how the outlook deteriorated from roughly balanced in January to a deficit today. Then, we summarize the proposals the Governor puts forward to address the budget problem.
https://lao.ca.gov/Publications/Report/5044

Rethinking California's Reserve Policy

Apr 10, 2025 - These changes included: (1)  new rules for deposits into the BSA, (2)  limitations on the Legislature ’s ability to access the fund, and (3)  a new maximum level for constitutional deposits into the fund.
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 - Much  of the new spending is linked to the Governor ’s recently announced compacts with CSU and UC. The largest components of the compacts are 5  percent annual General Fund base increases over the next five years (through 2026 ‑27).
https://lao.ca.gov/Publications/Report/4492

The 2024-25 Budget: Multiyear Budget Outlook

May 23, 2024 - By pulling back substantially on one-time and temporary spending, as well as making some ongoing reductions, the Governor ’s May Revision shrinks the state ’s projected deficits from around $30  billion (our December 2023 estimates) to an average of less than $10  billion (our estimates today).
https://lao.ca.gov/Publications/Report/4907

The 2023-24 California Spending Plan: Other Provisions

Nov 8, 2023 - Although the state and employees contribute money to prefund retiree health benefits earned today, the state pays for current retirees ’ health benefits on a pay-as-you-go basis. This pay-as-you-go cost grows each year as health premiums rise and the number of retired state workers grows.
https://lao.ca.gov/Publications/Report/4814

The 2022-23 California Spending Plan: The State Appropriations Limit

Sep 30, 2022 - For more information about the history of the appropriations limit, and an analysis of why the SAL is impacting budget decisions today, see our previous reports, here: The State Appropriations Limit .
https://lao.ca.gov/Publications/Report/4631