The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - This is because constitutional spending requirements under Proposition  98 (1988) and Proposition  2 (2014) almost entirely offset revenue gains. Moreover, we estimate costs in other programs to be about $6  billion higher than anticipated.
https://lao.ca.gov/Publications/Report/5091

California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - After the dot-com bust and the Great Recession, it took four and five years, respectively, for revenues to recover. Incorporating revenue risk into the budget now, therefore, reflects prudence, not pessimism.
https://lao.ca.gov/Publications/Report/5104

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

Jan 12, 2026 - Under two voter initiatives, the State Constitution requires the state to set aside a share of revenues for schools and community colleges (Proposition  98, 1988) and debt payments and reserve deposits (Proposition  2, 2014).
https://lao.ca.gov/Publications/Report/5101

The 2025-26 Budget: Initial Comments on the Governor's May Revision

May 17, 2025 - All Other Changes Improve Budget Bottom Line by $2   Billion. Across the rest of the budget, the administration estimates a net improvement of $2  billion to the General Fund bottom line. The  largest component is a $1.5  billion upward revision to the entering fund balance, primarily driven by higher ‑than ‑expected reversions of unspent funds and lower required Proposition  2 (2014) debt payments.
https://lao.ca.gov/Publications/Report/5044

The 2024-25 Budget: Multiyear Budget Outlook

May 23, 2024 - The dark line shows the administration ’s forecast of revenues in the May Revision. The light green line shows the amount of revenue the state would need to “break even ” —that is, the level of revenue the state would need to be able to afford the level of spending proposed in the May Revision.
https://lao.ca.gov/Publications/Report/4907

The 2024-25 Budget: California's Fiscal Outlook

Dec 7, 2023 - In the case of the Proposition 98 Reserve, reserve withdrawals are sometimes required, especially in tighter fiscal times. Proposition 2 This Year, Most Declines in BSA ‑Related Requirements Do Not Impact Budget ’s Bottom Line.
https://lao.ca.gov/Publications/Report/4819

The 2026-27 Budget: How to Use One-Time Revenue Improvements

Feb 20, 2026 - Our Revenue Estimates Consistent With $2.5  Billion Upgrade to Budget Bottom Line Compared to January. Our recent revenue post suggests an improvement in revenues of around $5 billion relative to the Governor’s budget estimates.
https://lao.ca.gov/Publications/Report/5133

The 2022-23 Budget: Fiscal Outlook for Schools and Community Colleges

Nov 17, 2021 - Make Optional Proposition 98 Reserve Deposit. An additional one ‑time deposit into the Proposition 98 Reserve would increase the protection for ongoing programs in the event of an economic downturn, reducing the likelihood of cuts or deferrals.
https://lao.ca.gov/Publications/Report/4473

The 2023-24 Budget: California's Fiscal Outlook

Nov 16, 2022 - We estimate a one ‑quarter extension results in lower General Fund costs of about $450   million —improving the budget bottom line condition by that amount (this figure is subject to uncertainty). Inflation‑Related Adjustments Vary Across Budget The General Fund budget can be thought of in two parts: (1)  the Proposition  98 budget for schools and community colleges, representing about 40  percent of General Fund spending, and (2)  everything else.
https://lao.ca.gov/Publications/Report/4646

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

Jan 10, 2021 - Proposition  98 Reserve Deposits Required in 2020 ‑21 and 2021 ‑22. Proposition  2 (2014) established the Proposition  98 Reserve and set forth rules requiring deposits and withdrawals under certain conditions.
https://lao.ca.gov/Publications/Report/4309