The 2021-22 Budget: California's Fiscal Outlook

Nov 18, 2020 - A new statutory requirement to provide supplemental payments on top of the minimum level makes even more funding available for schools and community colleges but contributes to the state ’s operating deficit.
https://lao.ca.gov/Publications/Report/4297

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

May 17, 2021 - (We also include links to Appendix tables at the end of this post and the top left of this page. These appendix tables itemize select proposals by policy area based on our understanding at this time.)
https://lao.ca.gov/Publications/Report/4432

The 2024-25 Budget: Overview of the Governor's Budget

Jan 13, 2024 - (The Legislature also can withdraw the entire “discretionary” balance of the BSA at any time, which are amounts that were deposited into the fund on top of Proposition 2 requirements.) The Governor proposes withdrawing half of the BSA’s constitutional balance, $10.2 billion, and the entire discretionary balance, $1.8 billion.
https://lao.ca.gov/Publications/Report/4825

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

May 17, 2024 - (The Legislature also can withdraw the entire “discretionary ” balance of the BSA at any time, which are amounts that were deposited into the fund on top of Proposition  2 requirements.) In the May Revision, the Governor proposes withdrawing about $3  billion from the BSA —significantly less than the roughly $12  billion withdrawal proposed in January.
https://lao.ca.gov/Publications/Report/4902

Rethinking California's Reserve Policy

Apr 10, 2025 - These problems are also clear when California ’s reserves are compared to other states —California ranks near the top in terms of revenue volatility, but below average in terms of reserves. As such, our recommendations are an honest reflection of the volatility in the state ’s tax system.
https://lao.ca.gov/Publications/Report/5028

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

Nov 17, 2021 - The  top of Figure 10 shows how funding and costs change over the period under our main forecast. The lighter shaded area represents the amount available for new commitments, assuming no changes to current law or policy.
https://lao.ca.gov/Publications/Report/4473

The State Appropriations Limit

Apr 21, 2021 - In particular, Proposition  30  (201 2) i ncreased —and Proposition  55 (201 6) e xtended —the top marginal rates for the personal income tax, thereby resulting in more state collections from capital gains.
https://lao.ca.gov/Publications/Report/4416

The 2021-22 Budget: Overview of the Spending Plan (Final Version)

Oct 27, 2021 - Trailer legislation adopted in June 2020 would have required the state to make payments to schools and community colleges on top of the minimum funding requirement beginning in 2021‑22. These supplemental payments were intended to accelerate the recovery of school funding from the decline the state anticipated last June.
https://lao.ca.gov/Publications/Report/4448

The 2020-21 Budget: Overview of the California Spending Plan (Final Version)

Oct 5, 2020 - First, it requires the state to make temporary payments on top of the Proposition   98 r equirement beginning in 2021 ‑22. Each payment will equal 1. 5  p ercent of annual General Fund revenue and can be allocated for any school or community college purpose.
https://lao.ca.gov/Publications/Report/4263

The 2021-22 Budget: Overview of the Governor's Budget

Jan 10, 2021 - In addition, a law enacted last June requires the state to make a $2.3  billion supplemental payment on top of the guarantee in 2021 ‑22. Including this payment, total Proposition  98 funding for schools and community colleges in 2021 ‑22 is $88.1  billion —$60.8  billion from state General Fund and $27.3  billion from local property tax revenue.
https://lao.ca.gov/Publications/Report/4309