The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - First, the budget problem is now larger than anticipated, despite improvements in revenue, and the structural deficits are significant and growing. Second, while our revenue estimates hedge against a market downturn, they do not reflect the revenue declines the state would experience in a recession.
https://lao.ca.gov/Publications/Report/5091

The 2022-23 California Spending Plan: Other Provisions

Sep 27, 2022 - In anticipation of the new ODI, the spending plan shifts the funding source for $4.8 million and six positions at the current ODI from cost recovery to the General Fund, and provides $20 million one-time General Fund for deposit into a Data and Innovation Services Revolving Fund to support engagements and projects led by the new ODI.
https://lao.ca.gov/Publications/Report/4626

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

California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - First, despite a $42  billion upgraded revenue estimate, the Governor ’s proposal nevertheless cited a $3  billion deficit under DOF assumptions. Second, the Governor proposed suspending a $2.8  billion true-up deposit to the state ’s reserve that otherwise would be required.
https://lao.ca.gov/Publications/Report/5104

The 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - In this section, we first present our estimates of the budget problem the Legislature addressed in the 2025 ‑26 budget package, focusing on the three ‑year budget window under consideration: 2023 ‑24 through 2025 ‑26.
https://lao.ca.gov/Publications/Report/5079

The 2024-25 California Spending Plan: Other Provisions

Oct 2, 2024 - Makes Cuts to the California Jobs First Program. The budget permanently reduces funding for the California Jobs First Program by $150  million and delays an additional $150  million. The program retains $50  million per year in funding for this program in 2024-25 through 2026-27.
https://lao.ca.gov/Publications/Report/4934

The 2024-25 California Spending Plan: Other Provisions

Oct 2, 2024 - Makes Cuts to the California Jobs First Program. The budget permanently reduces funding for the California Jobs First Program by $150  million and delays an additional $150  million. The program retains $50  million per year in funding for this program in 2024-25 through 2026-27.
https://lao.ca.gov/Publications/Report/4934/governors-office-of-emergency-services

The 2025-26 Budget: California's Fiscal Outlook

Nov 20, 2024 - Total pay grew at a well above ‑average rate in the first half of 2024. The first quarter was especially strong, with 17  percent annualized growth in total pay, among the sharpest quarterly growth rates on record.
https://lao.ca.gov/Publications/Report/4939

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

Jan 13, 2025 - First, some proposals provide short ‑term budget savings that create more budget capacity. These total $2.2  billion. Second, the Governor ’s budget includes new discretionary proposals that use budget capacity by increasing spending or reducing revenues.
https://lao.ca.gov/Publications/Report/4951

Rethinking California's Reserve Policy

Apr 10, 2025 - Create New, More Robust and Flexible Deposit Rules The Legislature could first consider asking voters to replace Proposition 2’s existing framework for deposit rules with something entirely different.
https://lao.ca.gov/Publications/Report/5028