The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - This year, for example, our outlook reflects our best estimates of the effects of H.R. 1: One Big Beautiful Bill Act on the state budget but does not make assumptions about future federal policy changes.
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: 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

The 2024-25 Budget: Overview of the Spending Plan

Sep 6, 2024 - Second, it notably reduces how much tax revenue is used for augmentations, instead using more money to help offset General Fund spending ($3.5  billion through 2024 ‑25 and $7.7  billion through 2026 ‑27).
https://lao.ca.gov/Publications/Report/4922

The 2025-26 Budget: California's Fiscal Outlook

Nov 20, 2024 - One path is falling interest rates and expansion of money available for lending and investment. A key driver of California ’s economic slump over the last two years has been the Federal Reserve ’s efforts to tamp down inflation by raising interest rates and shrinking how much money is available for lending and investment.
https://lao.ca.gov/Publications/Report/4939

The 2024-25 California Spending Plan: Other Provisions

Oct 2, 2024 - Makes Cuts to the California Jobs First Program. The budget permanently reduces funding for the California Jobs First Program by $150  million and delays an additional $150  million. The program retains $50  million per year in funding for this program in 2024-25 through 2026-27.
https://lao.ca.gov/Publications/Report/4934

The 2024-25 California Spending Plan: Other Provisions

Oct 2, 2024 - Makes Cuts to the California Jobs First Program. The budget permanently reduces funding for the California Jobs First Program by $150  million and delays an additional $150  million. The program retains $50  million per year in funding for this program in 2024-25 through 2026-27.
https://lao.ca.gov/Publications/Report/4934/governors-office-of-emergency-services

The 2022-23 Budget: Initial Comments on the State Appropriations Limit Proposal

Feb 4, 2022 - Setting aside the money now will ensure the state has the resources to pay for these obligations. Recommend the Legislature Make a Plan Before the May Revision for Addressing the Requirements. Regardless of which approach the Legislature decides to pursue, given the complexity of this budget situation, the high likelihood SAL requirements will increase, and the
https://lao.ca.gov/Publications/Report/4515

Flexible Funding to California in the American Rescue Plan

Mar 23, 2021 - How Will the Money Be Allocated? Federal funds anticipated at the time of budget enactment are appropriated just like any other state revenue source. This means the Legislature will need to approve a plan for spending these funds in the 2021-22 Budget Act .
https://lao.ca.gov/Publications/Report/4407

A Framework for Allocating Federal Recovery Funds

May 4, 2021 - Subscribe | California State Legislature | Online Voter Registration | Privacy Policy | Accessibility Legislative Analyst's Office | The California Legislature's Nonpartisan Fiscal and Policy Advisor 925 L Street, Suite 1000 Sacramento, CA 95814 | (916) 445-4656
https://lao.ca.gov/Publications/Report/4422