Rethinking California's Reserve Policy

Apr 10, 2025 - For example, in 2018 ‑19, the Legislature created the Budget Deficit Savings Account —which was used to temporarily hold a $2.6  billion optional deposit into the BSA —and the Safety Net Reserve —a reserve specifically dedicated to CalWORKs and Medi ‑Cal.
https://lao.ca.gov/Publications/Report/5028

The 2020-21 Budget: California's Spring Fiscal Outlook

May 8, 2020 - Finally, the Governor could pause the minimum wage increase scheduled for January 1, 2020. We currently estimate, however, that the net budgetary savings from this action likely would not be significant in 2020 ‑21.
https://lao.ca.gov/Publications/Report/4228

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

Jan 13, 2025 - Finally, the Governor sets the balance of the Special Fund for Economic Uncertainties to $4.5   billion —somewhat higher than the level enacted by recent budgets. Revenue Estimates Reasonable, but Risks Must Be Kept in Focus.
https://lao.ca.gov/Publications/Report/4951

California's Legislative Analyst's Office and the Value of Independence

Nov 15, 2024 - Although aligning revenue estimates might reduce the potential for confusion, doing so would risk creating bigger problems. In particular, it could provide a false sense of certainty about the state ’s fiscal position.
https://lao.ca.gov/Publications/Report/4938

The State Appropriations Limit

Apr 21, 2021 - Since 2018, the Governor also declared states of emergency related to various wildfires. For example, the Governor declared a state of emergency related to the Camp wildfire on November 8, 2018, and related to the LNU Lightning Complex and other wildfires burning statewide on August  18, 2020.
https://lao.ca.gov/Publications/Report/4416

The 2024-25 Budget: Initial Comments on the Governor’s May Revision

May 17, 2024 - Finally, given that our revenue forecast is somewhat below the administration ’s forecast, we would suggest the Legislature consider whether or not it is comfortable with this downside risk to the state ’s budget picture.
https://lao.ca.gov/Publications/Report/4902

The 2020-21 Budget: Overview of the Governor's Budget

Jan 13, 2020 - Across 2018‑19 to 2020‑21, the administration’s estimates of revenue from the state’s three largest taxes are $34 million (less than 0.01 percent of total collections) above our Fiscal Outlook estimates.
https://lao.ca.gov/Publications/Report/4135

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

May 17, 2025 - When changes in costs do not occur automatically under current policy, we count them as budget solutions or augmentations. We take this approach in order to provide the Legislature visibility into the full scope of the administration ’s choices.
https://lao.ca.gov/Publications/Report/5044

The 2023-24 Budget: Initial Comments on the Governor's May Revision

May 15, 2023 - The 2018‑19 budget created the Safety Net Reserve to set aside funds for future costs of two programs—CalWORKs and Medi‑Cal—in the event of a recession. Absent policy changes, these programs typically experience increased expenditures during a recession when unemployment increases and program caseloads rises.
https://lao.ca.gov/Publications/Report/4769

The 2020-21 Budget: Structuring the Budget

Feb 10, 2020 - Finally, the Safety Net Reserve was created in 2018 ‑ 19 t o fund the future costs for two means ‑tested programs in the event of a recession. Understanding the Special Fund for Economic Uncertainties (SFEU) What Is the SFEU?
https://lao.ca.gov/Publications/Report/4150