Legislative Analyst's Office: Recent State Budget Publications

The 2026-27 Budget: Initial Comments on the Governor's May Revision

Mon, 18 May 2026 00:00:00 GMT

In this report, we provide a summary of and comments on this revised budget, focusing on the overall condition of the state General Fund.

Update (5/21/26): Upon further review and receipt of additional information from the administration, we estimate the amount of discretionary spending in the May Revision is $1.1 billion, rather than $1.3 billion.

The 2026-27 May Revision: LAO Analyses

Mon, 18 May 2026 00:00:00 GMT

As our office publishes responses to the Governor's 2026-27 May Revision, we will add them to this index page.

Understanding $100 Billion in Spending Growth: Causes and Fiscal Implications

Tue, 28 Apr 2026 00:00:00 GMT

Since 2019-20, General Fund spending has grown just over $100 billion—from $146 billion in 2019-20 to $248 billion under the Governor’s budget proposal for 2026-27. This report assesses the causes and fiscal implications of this growth in order to inform decision-making going forward.

The 2026-27 Budget: How to Use One-Time Revenue Improvements

Fri, 20 Feb 2026 00:00:00 GMT

Recent stock market performance continues to boost income tax collections. In our Fiscal Outlook, we strongly advised the Legislature to treat near-term strength in tax collections as temporary because we expect these gains to reverse. Further, the state faces significant structural deficits in the future. Accordingly, any windfall received from this revenue uptick represents an opportunity for the Legislature to prepare for future fiscal challenges.

Revenue Volatility and California’s Reserve Policy

Wed, 18 Feb 2026 00:00:00 GMT

Senate Committee on Budget and Fiscal Review

California’s Strong Revenue Trends Mask Looming Budget Risk

Fri, 23 Jan 2026 00:00:00 GMT

In this installment of Fiscal Perspectives, the Legislative Analyst describes how the LAO’s revenue estimates represent a hedge against downside stock market risk and why—despite current cash trends—caution matters given the state’s large, ongoing structural deficit.

Senate Handout: Overview of the Governor’s Budget

Wed, 21 Jan 2026 00:00:00 GMT

Senate Budget and Fiscal Review

Assembly Handout: Overview of the Governor’s Budget

Tue, 20 Jan 2026 00:00:00 GMT

Assembly Committee on Budget

The 2026-27 Budget: Overview of the Governor's Budget

Mon, 12 Jan 2026 00:00:00 GMT

On January 9, 2026, Governor Newsom’s administration presented its proposed state budget to the California Legislature. In this report, we provide a high-level summary and our initial analysis of the Governor’s budget based on our preliminary review (as of January 10).

Assembly Budget Handout (PDF)

Senate Budget and Fiscal Review Handout (PDF)

The 2026-27 Budget

Thu, 01 Jan 2026 00:00:00 GMT

As we release publications aimed at addressing the 2026-27 budget situation, we will add them to this index page.