California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - After the dot-com bust and the Great Recession, it took four and five years, respectively, for revenues to recover. Incorporating revenue risk into the budget now, therefore, reflects prudence, not pessimism.
https://lao.ca.gov/Publications/Report/5104

The 2024-25 Budget: Overview of the Spending Plan

Sep 6, 2024 - These slots will have full ‑year costs of $305  million beginning in 2025 ‑26. The  budget also modifies and adds into statute details related to the multiyear slot expansion plan. (In 2021 ‑22, the Legislature and Governor agreed to add 206,500 child care slots by 2025 ‑26.
https://lao.ca.gov/Publications/Report/4922

The 2022-23 Budget: Overview of the Spending Plan

Oct 12, 2022 - When the minimum funding requirement is growing quickly, the Constitution requires the state to deposit some of the available funding into a statewide reserve account for schools and community colleges.
https://lao.ca.gov/Publications/Report/4616

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - For California, the dot ‑com era —when stocks rose and then fell precipitously in response to widespread adoption of the internet —offers the most salient example. The internet has proven to be a transformative technology and, yet, the stock market ’s initial reaction was clearly overly exuberant.
https://lao.ca.gov/Publications/Report/5091

The 2018-19 Budget: California Spending Plan (Final Version)

Oct 2, 2018 - Slots Funds Additional Alternative Payment Slots. The budget provides $ 205  m illion federal funds for 11, 307 n ew Alternative Payment slots starting July 1, 2018. This funding is tied to an increase in the amount of available federal funds.
https://lao.ca.gov/Publications/Report/3870/4

The 2019-20 Budget: Proposition 98 Outlook

Nov 14, 2018 - New Preschool Slots. The 2018 ‑ 19 b udget package funded 2, 959 n ew full ‑day State Preschool slots beginning April 1, 2019. We estimate the cost to annualize these slots in 2019 ‑ 20 i s $ 27  m illion.
https://lao.ca.gov/Publications/Report/3897

Building Reserves to Prepare for a Recession

Mar 7, 2018 - These deposits were made in the 2006 ‑07 and 2007 ‑ 08 e nacted budgets when the economy was still expanding, but were quickly used to address budget deficits that emerged later on in the 2007 ‑08 fiscal year.
https://lao.ca.gov/Publications/Report/3769

The 2017-18 Budget: California Spending Plan

Oct 18, 2017 - Slots Funds Additional State Preschool Slots. The budget provides $24  million to annualize the cost of 2,959 preschool slots added April  1, 2017. The budget also provides $8  million for 2,959 new full ‑day State Preschool slots at local education agencies (LEAs) starting April  1, 2018.
https://lao.ca.gov/Publications/Report/3694/4

The 2016-17 Budget: California Spending Plan

Oct 5, 2016 - Slots Budget Package Increases Funding for State Preschool Slots. The budget provides $34  million for the State Preschool program to annualize the cost of preschool slots added January 1, 2015. The budget also provides $8  million for 2,959 new full –day State Preschool slots at LEAs starting April  1, 2017.
https://lao.ca.gov/Publications/Report/3487/4

Rethinking California's Reserve Policy

Apr 10, 2025 - Revenues Are Volatile … From year to year, state revenues can grow very quickly or contract quickly. Revenues drop during economic recessions, when business activity slows, unemployment rises, and consumer spending declines, leading to lower tax collections.
https://lao.ca.gov/Publications/Report/5028