The 2023-24 Budget: Overview of the Governor's Budget

Jan 13, 2023 - The Budget Problem A budget problem —also called a deficit —occurs when resources for the upcoming budget are insufficient to cover the costs of currently authorized services. Because the State Constitution requires the state to pass a balanced budget, the Governor must propose solutions when the administration estimates the state faces a budget problem.
https://lao.ca.gov/Publications/Report/4662

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

Jan 13, 2025 - The state constitution has a balanced budget requirement, which means the balance of the SFEU must be set above zero for the upcoming fiscal year. Any level above zero is up to the discretion of the Legislature.
https://lao.ca.gov/Publications/Report/4951