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

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: 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 Budget: Proposition 2 Debt Payment Proposals

Mar 20, 2024 - Supplemental Pensions Payments Employers May Contribute Any Amount of Money Above What Is Required. Pension boards determine —either according to actuarial standards or statutory requirements —how much money employers must contribute to the pension system each year to address any existing unfunded liabilities.
https://lao.ca.gov/Publications/Report/4887

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

Feb 4, 2022 - There are many options for tax reductions, including: broad ‑based rebates, targeted rebates, and expansions of tax credits and programs like the Earned Income Tax Credit. Compared to waiting to address excess revenues, this option would afford the state more flexibility in designing the reductions.
https://lao.ca.gov/Publications/Report/4515

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 2022-23 Budget: Overview of the Spending Plan

Oct 12, 2022 - SAL = state appropriations limit; CAC = California Arts Council; CSSSA = California State Summer School for the Arts; CDE = California Department of Education; CDFA = California Department of Food and Agriculture; CSL = California State Library; CTC = Commission on Teacher Credentialing; DCA = Department of Consumer Affairs; DCC = Department of Cannabis Control; DFPI = Departm ent of Financial
https://lao.ca.gov/Publications/Report/4616/1

The 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - How the Spending Plan Addresses the Budget Problem The state has several types of solutions —or options —for addressing a budget problem, but the most important include: reserve withdrawals, spending reductions, revenue increases, and borrowing (for example, loaning money from other funds to the General Fund).
https://lao.ca.gov/Publications/Report/5079

The 2022-23 California Spending Plan: Other Provisions

Sep 27, 2022 - The budget expands the state ’s existing Young Child Tax Credit (YCTC) to families with no earnings. Previously, the YCTC provided an additional $1,000 refundable tax credit to most families who qualify for the state ’s Earned Income Tax Credit (or CalEITC) who also have children under the age of 6.
https://lao.ca.gov/Publications/Report/4626

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

May 15, 2023 - Moreover, the administration will have an information advantage —it knows better what money has or has not been dispersed —making it more challenging for the Legislature to exert its preferences in response.
https://lao.ca.gov/Publications/Report/4769