The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - These companies have made big bets on AI, spending hundreds of billions of dollars on data centers and offering extraordinary pay packages to recruit AI researchers. This spending, coupled with sizable gains to investors and tech company employees via stock options, is boosting state income tax receipts.
https://lao.ca.gov/Publications/Report/5091

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

Feb 20, 2026 - The 2026-27 Budget: How to Use One-Time Revenue Improvements The 2026-27 Budget How to Use One-Time Revenue Improvements Recent stock market performance continues to boost income tax collections. In our Fiscal Outlook , we strongly advised the Legislature to treat near-term strength in tax collections as temporary because we expect these gains to reverse.
https://lao.ca.gov/Publications/Report/5133

The 2026-27 Budget: How to Use One-Time Revenue Improvements [Publication Details]

Feb 20, 2026 - The 2026-27 Budget: How to Use One-Time Revenue Improvements [Publication Details] Translate Our Website This Google ™ translation feature provided on the Legislative Analyst's Office (LAO) website is for informational purposes only.
https://lao.ca.gov/Publications/Detail/5133

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: California's Fiscal Outlook

Nov 20, 2024 - One path is falling interest rates and expansion of money available for lending and investment. A key driver of California ’s economic slump over the last two years has been the Federal Reserve ’s efforts to tamp down inflation by raising interest rates and shrinking how much money is available for lending and investment.
https://lao.ca.gov/Publications/Report/4939

The 2022-23 Budget: Initial Comments on the State Appropriations Limit Proposal

Feb 4, 2022 - Setting aside the money now will ensure the state has the resources to pay for these obligations. Recommend the Legislature Make a Plan Before the May Revision for Addressing the Requirements. Regardless of which approach the Legislature decides to pursue, given the complexity of this budget situation, the high likelihood SAL requirements will increase, and the difficult trade
https://lao.ca.gov/Publications/Report/4515

The 2024-25 Budget: Proposition 2 Debt Payment Proposals

Mar 20, 2024 - Supplemental Pensions Payments Employers May Contribute Any Amount of Money Above What Is Required. Pension boards determine —either according to actuarial standards or statutory requirements —how much money employers must contribute to the pension system each year to address any existing unfunded liabilities.
https://lao.ca.gov/Publications/Report/4887

Flexible Funding to California in the American Rescue Plan

Mar 23, 2021 - How Will the Money Be Allocated? Federal funds anticipated at the time of budget enactment are appropriated just like any other state revenue source. This means the Legislature will need to approve a plan for spending these funds in the 2021-22 Budget Act .
https://lao.ca.gov/Publications/Report/4407

The 2022-23 Budget: California’s Fiscal Outlook

Nov 17, 2021 - How Does the Legislature Meet the Constitutional Requirements Under the SAL? The Legislature can meet its SAL requirements in any of three ways: (1) lower tax revenues; (2) split the excess revenues between additional school and community college district spending and taxpayer rebates, or (3) appropriate more money for purposes excluded from the SAL.
https://lao.ca.gov/Publications/Report/4472

The State Appropriations Limit

Apr 21, 2021 - Figure  4 shows how these factors result in differential growth rates between personal income, total income for those earning more than $200,000 annually, and personal income tax revenue from those high  earners.
https://lao.ca.gov/Publications/Report/4416