The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - The state solved a $27  billion deficit in 2023 ‑24, a $55  billion deficit in 2024 ‑25, and a $15  billion deficit in 2025 ‑26 (in addition to roughly $28  billion in proactive budget ‑balancing actions taken the year before).
https://lao.ca.gov/Publications/Report/5091

The 2022-23 Budget: California’s Fiscal Outlook

Nov 17, 2021 - In considering the state ’s 2022 ‑23 SAL estimates, we anticipate the state ’s SAL position in 2023 ‑24 to be a major consideration in the budget process and enactment. Our estimates for the state ’s SAL position across the budget window are also shown in the insert in Figure 6.
https://lao.ca.gov/Publications/Report/4472

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

Jan 13, 2023 - (That is, in our view, these costs would not have occurred absent legislative action and as a result do not contribute to the budget problem the Legislature faces today.) Comparison to LAO November Outlook.
https://lao.ca.gov/Publications/Report/4662

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 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

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 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 2024-25 Budget: Overview of the Governor's Budget

Jan 13, 2024 - While not all of these amounts represent lower state spending over the long term, they do result in savings today at a cost in the future. As a result, we count them as spending‑related solutions. We estimate the proposed budget includes about $3 billion in reversions.
https://lao.ca.gov/Publications/Report/4825

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 2024-25 Budget: Initial Comments on the Governor’s May Revision

May 17, 2024 - While not all of these amounts represent lower state spending over the long term, they do result in savings today at a cost of forgone savings in the future. As a result, we count them as spending-related solutions.
https://lao.ca.gov/Publications/Report/4902