The 2024-25 Budget: Proposition 2 Debt Payment Proposals

Mar 20, 2024 - Accordingly, the state annually makes supplemental pension payments from the General Fund towards the state ’s pension unfunded liabilities. Proposition 2 Proposition   2 Contains Annual Debt Payment Requirement.
https://lao.ca.gov/Publications/Report/4887

The 2026-27 Budget: Initial Comments on the Governor's May Revision

May 18, 2026 - In this report, we provide a summary of and comments on this revised budget, focusing on the overall condition of the state General Fund. Update (5/21/26): Upon further review and receipt of additional information from the administration, we estimate the amount of discretionary spending in the May Revision is $1.1 billion, rather than $1.3 billion.
https://lao.ca.gov/Publications/Report/5187

The 2026-27 Budget: Initial Comments on the Governor's May Revision [Publication Details]

May 18, 2026 - In this report, we provide a summary of and comments on this revised budget, focusing on the overall condition of the state General Fund. Update (5/21/26): Upon further review and receipt of additional information from the administration, we estimate the amount of discretionary spending in the May Revision is $1.1 billion, rather than $1.3 billion.
https://lao.ca.gov/Publications/Detail/5187

The 2026-27 Budget: Initial Comments on the Governor's May Revision

May 18, 2026 - In this report, we provide a summary of and comments on this revised budget, focusing on the overall condition of the state General Fund. Update (5/21/26): Upon further review and receipt of additional information from the administration, we estimate the amount of discretionary spending in the May Revision is $1.1 billion, rather than $1.3 billion.
https://lao.ca.gov/Publications/Report/5187/1

The 2026-27 Budget: Initial Comments on the Governor's May Revision

May 18, 2026 - The 2026-27 Budget: Initial Comments on the Governor's May Revision Initial Comments on the Governor's May Revision Appendix 2: General Fund Spending Solutions in the 2026-27 May Revision General Fund Spending Solutions (Fund Shifts) Proposed in the 2026 ‑27 May Revision (In Millions) Ongoing shift to special funds — Ongoing shift to special funds — Behavioral Health Services Fund
https://lao.ca.gov/Publications/Report/5187/2

The 2026-27 Budget: Overview of the Governor's Budget [Publication Details]

Jan 12, 2026 - On January 9, 2026, Governor Newsom’s administration presented its proposed state budget to the California Legislature. In this report, we provide a high-level summary and our initial analysis of the Governor’s budget based on our preliminary review (as of January 10). Assembly Budget Handout (PDF) Senate Budget and Fiscal Review Handout (PDF)
https://lao.ca.gov/Publications/Detail/5101

The 2026-27 Budget: Overview of the Governor's Budget

Jan 12, 2026 - On a technical basis, it can be thought of as the end balance of the state ’s General Fund —the money that remains after accounting for all of the state ’s expected revenues and spending. 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.
https://lao.ca.gov/Publications/Report/5101

Understanding $100 Billion in Spending Growth: Causes and Fiscal Implications

Apr 28, 2026 - That  said, using data from the Department of Finance (DOF) that is the basis for budget estimates, our analysis would indicate that growth in employee compensation costs were split roughly evenly between increases in salary costs and increases in benefits costs (like health care and pension contributions) for state employees.
https://lao.ca.gov/Publications/Report/5176

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

Jan 13, 2024 - For example, major categories of cost shifts in the Governor’s budget include proposals to: defer one month of state employee payroll from June to July, which results in $1.6 billion in one‑time savings; redirect a $1.3 billion supplemental pension payment made under the requirements of Proposition 2 for actuarially required contributions to the California Public Employee Retirement System, and $1.2 billion in special fund loans.
https://lao.ca.gov/Publications/Report/4825

The 2026-27 Budget: How to Use One-Time Revenue Improvements [Publication Details]

Feb 20, 2026 - 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. Further, the state faces significant structural deficits in the future.
https://lao.ca.gov/Publications/Detail/5133