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 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: Multiyear Budget Outlook

May 24, 2025 - The first section of the post presents our estimates of the budget condition under these assumptions. The second section provides our analysis and comments. Budget Condition This Year ’s Budget Problem Very Similar to Administration ’s Under LAO Estimates.
https://lao.ca.gov/Publications/Report/5052

The 2025-26 Budget: Undertaking Fiscal Oversight

Feb 24, 2025 - For instance, California Advancing and Innovating Medi-Cal, a recent initiative to test new ways of delivering services, could be a focus of Medi -Cal oversight. Focusing on key elements of larger programs can provide the Legislature more detailed and practicable insight into program dynamics.
https://lao.ca.gov/Publications/Report/4983

Rethinking California's Reserve Policy

Apr 10, 2025 - That is, we aim to construct a reserve policy that has the best chance of withstanding the test of time and minimizes the need for the Legislature to ask voters to make further changes to the Constitution in a few years.
https://lao.ca.gov/Publications/Report/5028

The 2024-25 California Spending Plan: Other Provisions

Oct 2, 2024 - Monthly meetings will include updates on any pilot GenAI projects undertaken by departments, such as the first five pilot projects currently in testing . The legislation also requires pilot projects to adhere to specific data privacy requirements.
https://lao.ca.gov/Publications/Report/4934

The 2024-25 California Spending Plan: Other Provisions

Oct 2, 2024 - Monthly meetings will include updates on any pilot GenAI projects undertaken by departments, such as the first five pilot projects currently in testing . The legislation also requires pilot projects to adhere to specific data privacy requirements.
https://lao.ca.gov/Publications/Report/4934/governors-office-of-emergency-services

The 2021-22 Budget: Overview of the Governor's Budget

Jan 10, 2021 - To address these concerns, the Legislature could, for example, modify the proposal to first offer in-person instruction to all high-needs students a month before bringing back all younger students. This would allow time for schools to ramp up testing capabilities an d address other implementation issues with a smaller group of students and staff.
https://lao.ca.gov/Publications/Report/4309

The 2022-23 California Spending Plan: Other Provisions

Sep 27, 2022 - In some instances, other state agencies manage pre-existing statewide public outreach activities and the budget package requires those agencies to share information regarding outreach efforts wi th OCPSC.
https://lao.ca.gov/Publications/Report/4626

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