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

Jan 12, 2026 - First, while our revenue forecast represented an upgrade to budget act assumptions, it also incorporated the strong risk of a sto ck market downturn, which tempered the estimates. Second, we found that spending was much higher than had been anticipated in June, in large part due to the state ’s constitutional requirements eroding revenue gains.
https://lao.ca.gov/Publications/Report/5101

Whether or Not to Tap Reserves to Solve Estimated Budget Problem Emerges as Key Fiscal Decision Facing California’s Legislature

Apr 19, 2023 - Few choices will be as consequential for the state ’s medium-term fiscal outlook as whether or not to draw upon its budget reserves to close a projected deficit. On the one hand, reserves offer an expedient solution to the problem.
https://lao.ca.gov/Publications/Report/4762