The 2026-27 Budget: Proposition 98 Guarantee and K-12 Spending Plan

Feb 4, 2026 - Investors are borrowing large sums to buy stocks, and households are more invested in the stock market than at any time in at least 70 years. Historically, these signs have preceded stock market downturns.
https://lao.ca.gov/Publications/Report/5110

The 2024-25 Budget: The Governor’s Proposition 98 Funding Maneuver

Feb 15, 2024 - That is, on a daily basis, the state ’s tax agencies collect revenues, the State Controller pays the state ’s bills, and the State Treasurer invests any of the state ’s cash that is currently unused.
https://lao.ca.gov/Publications/Report/4840

The 2025-26 Budget: Overview of the Governor's Budget

Jan 13, 2025 - The reason for the reduction is the recent voter approval of Proposition  35 (2024), which requires the state to spend less MCO tax money on offsetting General Fund spending and more money on provider rate increases.
https://lao.ca.gov/Publications/Report/4951

Update on the Progress of the CalSTRS Funding Plan

Nov 18, 2021 - We recommend making these changes before the impacts of the 27.2 percent investment return are phased in. By making these changes soon, should the state ’s UAO increase, CalSTRS would be able to adjust rates more swiftly, thereby reducing further increases in unfunded liabilities.
https://lao.ca.gov/Publications/Report/4475

The 2026-27 Budget: Re-Envisioning State Education Governance

Mar 18, 2026 - For example, the Governor could resolve disagreements that arise between the SBE and the education commissioner without resorting to litigation. Finally, it would increase the likelihood that school districts receive clear guidance from the state.
https://lao.ca.gov/Publications/Report/5165

The 2026-27 Budget: Fiscal Outlook for Schools and Community Colleges

Nov 19, 2025 - Most notably, it indicates that the guarantee in 2026 ‑27 would be unable to cover the COLA without a reserve withdrawal. A  decline in revenues or a higher COLA rate could make the COLA unaffordable.
https://lao.ca.gov/Publications/Report/5093

The 2026-27 Budget: K-12 Proposals

Feb 19, 2026 - Without any specific planning expectations for the first three years of funding, new grantees may not be as successful in establishing their programs as prior recipients. Unclear How Frequently Schools Would Be Able to Opt Into Program in Future.
https://lao.ca.gov/Publications/Report/5131

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

Nov 17, 2021 - Although CalSTRS recently reported investment returns far above its long ‑term target, these returns are unlikely to reduce required district contributions. Under the funding plan the Legislature adopted in 2013 ‑14, the state General Fund is responsible for most of the volatility in CalSTRS ’ investment returns.
https://lao.ca.gov/Publications/Report/4473

The 2021-22 Budget: Initial Comments on the Governor’s May Revision

May 17, 2021 - If the Legislature wants to make different decisions about this spending (without statutory changes or fund shifts), it can either: (1)  use the funds to make tax rebates and additional payments to schools, (2)  spend on other SAL-excluded purposes, or (3)  use the funds to reduce taxes.
https://lao.ca.gov/Publications/Report/4432

The 2022-23 Budget: Overview of the Governor's Budget

Jan 13, 2022 - (The state also can make optional deposits and withdrawals.) The June 2021 budget estimated the state would be required to make deposits totaling $4.5  billion across 2020 ‑21 and 2021 ‑22. Under the Governor ’s budget, the required deposits in those years increase to nearly $6.7  billion and the state makes an additional $3.1  billion deposit in 2022 ‑23.
https://lao.ca.gov/Publications/Report/4492