The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - The 2026-27 Budget: California's Fiscal Outlook Executive Summary Not Safe to Bet Artificial Intelligence ( AI) Fueled Exuberance Is Sustainable. Both the California and U.S. economies currently face significant headwinds.
https://lao.ca.gov/Publications/Report/5091

Strong Tax Collections Belie California's Challenging Fiscal Outlook

Apr 26, 2022 - As a result, increased yields on short-term Treasury notes, reflecting the Fed ’s efforts to head off inflation, can approach or exceed the yield on longer-term notes. As displayed in Figure  1, this spread briefly fell into negative territory in early April 2022, from 1.29  percentage points on October 8, 2021.
https://lao.ca.gov/Publications/Report/4590

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