The 2026-27 Budget: Contract to Achieve Operational Efficiencies [Publication Details]

Mar 10, 2026 - The budget assumed that the process changes resulting from the contract would reduce state costs by $500 million in 2025-26, growing to $2 billion in annual savings by 2028-29. This post provides background on the state’s recent efforts to identify efficiencies to achieve budget savings and our office’s comments and recommendations concerning the progress of the administration’s efforts to reduce state costs through this contract.
https://lao.ca.gov/Publications/Detail/5156

The 2026-27 Budget: Contract to Achieve Operational Efficiencies

Mar 10, 2026 - In June 2025, the administration estimated that this endeavor would result in annual General Fund savings of $500  million in 2025-26, growing to roughly $2  billion General Fund annually by 2028-29.
https://lao.ca.gov/Publications/Report/5156

The 2026-27 Budget: Child Welfare

Mar 3, 2026 - The administration estimates that implementing the Tiered Rate Structure will cost more than $300  million General Fund in 2027-28, $500  million in 2028-29, and $700  million General Fund in 2029-30 (with some potential growth thereafter and ongoing).
https://lao.ca.gov/publications/report/5147

The 2026-27 Budget: Framework for Approaching the Natural Resources, Environmental Protection, and Agriculture Budget

Feb 10, 2026 - The  proposed funding would support the cleanup of approximately 1,000 properties (about 500 per year), though DTSC estimates that about 2,100 properties still would require remediation thereafter. Given  the ongoing public health risks posed by lead ‑contaminated soil to residents in the surrounding communities, the state has a strong interest in advancing cleanup efforts.
https://lao.ca.gov/Publications/Report/5116

The 2026-27 Budget: Cap-and-Invest Expenditure Plan

Feb 10, 2026 - Proposes $500  million to support the remainder of the planned $1.25  billion CalFire backfill. ZEV Incentive Program. Proposes $115  million to create a new light ‑duty ZEV incentive program . (The Governor also proposes providing $85 million from the Air Pollution Control Fund—similarly freed up from undoing the previously‑approved MVA fund transfer—to support this new ZEV program, for a total of $200 million.)
https://lao.ca.gov/Publications/Report/5114

The 2026-27 Budget: Proposition 98 Guarantee and K-12 Spending Plan

Feb 4, 2026 - The S &P 500, for example, has risen about 40  percent over the last two years. Several signs, however, suggest that the stock market has become overvalued. For example, the ratio of stock prices to corporate earnings (a measure of how expensive stocks are) is near historically high levels ( Figure  5 ).
https://lao.ca.gov/Publications/Report/5110

California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - Whereas California’s labor market has stagnated over the last two years, the S&P 500 stock index has appreciated roughly 50 percent over the same period. And most of this increase has come from skyrocketing share prices among a handful of firms associated with innovations in Artificial Intelligence (AI).
https://lao.ca.gov/Publications/Report/5104

Immunology and immunotherapy. [Ballot]

Dec 17, 2025 - Fiscal Effects Increased State Costs of About $500 Million Each Year for 25 Years to Repay the Bond. The estimated cost to repay the bond would be about $500 million each year over a 25-year period. Payments would be made from the state General Fund.
https://lao.ca.gov/BallotAnalysis/Initiative/2025-026

Cap-and-Invest: November 2025 Auction Update and 2026-27 Budget Context

Dec 9, 2025 - If there is no deficit, $500  million in CalFire costs. $125  million for transit passes. $85  million for climate-focused technological innovation. $25  million for seed funding for a University of California Climate Research Center. $15  million to rebuild Topanga Park (which sustained damage in the Palisades fire).
https://lao.ca.gov/Publications/Report/5096

Overview of New Updates to the Cap-and-Invest Program

Dec 9, 2025 - Specifically, if the General Fund continues to experience deficits, A B  102 expresses the Legislature ’s intent that GGRF cover $1.25  billion of CalFire ’s costs in 2026 ‑27, $500  million in 2027 ‑28, and $500  million in 2028 ‑29.
https://lao.ca.gov/Publications/Report/5097