Rethinking California's Reserve Policy

Apr 10, 2025 - According to this measure, California has one of the most volatile tax revenue systems in the country, ranking fifth out of 50 states. However, using data from the Fiscal Survey of States put together by the National Association of State Budget Officers, California ’s rainy day fund balances are somewhat below average.
https://lao.ca.gov/Publications/Report/5028

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - This year, for example, our outlook reflects our best estimates of the effects of H.R. 1: One Big Beautiful Bill Act on the state budget but does not make assumptions about future federal policy changes.
https://lao.ca.gov/Publications/Report/5091

Rethinking California's Reserve Policy [Publication Details]

Apr 10, 2025 - Reserves allow the state to ensure stable funding for its services over time, even when revenue fluctuates unpredictably. Over the last few years, the state has indeed experienced significant fluctuations—large surpluses followed by significant deficits. This volatility has prompted interest in changes to the state’s reserve policy.
https://lao.ca.gov/Publications/Detail/5028

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 Spending Plan

Oct 16, 2025 - Importantly, these budget solutions also included a planned withdrawal from the state ’s rainy ‑day fund, the Budget Stabilization Account (BSA), of $7.1  billion. The June 2025 spending plan maintains these actions, including the reserve withdrawal.
https://lao.ca.gov/Publications/Report/5079

The 2025-26 Budget: California's Fiscal Outlook

Nov 20, 2024 - These choices included about $11  billion in spending ‑related solutions and $15  billion in all other solutions, including $5.5  billion in temporary revenue increases and a $7  billion withdrawal from the state ’s rainy ‑day fund .
https://lao.ca.gov/Publications/Report/4939

The 2024-25 Budget: Multiyear Budget Outlook

May 23, 2024 - While these estimates assume the state uses a portion of the rainy-day fund in 2025 ‑26, as planned under the May Revision, there would be more reserves available to cover the additional budget problem in 2025 ‑26 and 2026 ‑27.
https://lao.ca.gov/Publications/Report/4907

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

Jan 13, 2025 - This is one of the key reasons that the budget remains balanced now. The  June 2024 budget package committed to a total of $28  billion in budget solutions for 2025 ‑26, which included, $12  billion in spending ‑related solutions and nearly $16  billion in all other solutions, including $5.5  billion in temporary revenue increases and a $7  billion withdrawal from the state ’s rainy day fund, the Budget Stabilization Account (BSA).
https://lao.ca.gov/Publications/Report/4951

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 2023-24 Budget: Overview of the Spending Plan (Final Version)

Oct 16, 2023 - The budget also delays the intended $550   million non ‑Proposition   98 General Fund increase to the California Preschool, Transitional Kindergarten and Full ‑Day Kindergarten Facilities Grant Program from 2023 ‑24 to 2024 ‑25.
https://lao.ca.gov/Publications/Report/4788