California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - These and other indicators are at levels previously only seen at times when the market was approaching a peak before entering a period of retrenchment. Despite our view that there is a strong possibility of a market downturn, however, our revenue forecast does not assume one will occur.
https://lao.ca.gov/Publications/Report/5104

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

Feb 20, 2026 - In addition, recent budgets have relied on nearly $30  billion in borrowing to address deficits, and the Governor ’s budget proposes almost $6  billion in additional borrowing (see Figure  1). A period of strong revenue growth is not an appropriate time to draw down significant reserves or continue to rely on borrowing.
https://lao.ca.gov/Publications/Report/5133

The 2023-24 Budget: Multiyear Assessment

Feb 15, 2023 - None of these levels—both on the revenue and spending side—are consistent with shortfalls seen during recessions. Because Recent Budgets Focused on One ‑Time and Temporary Spending, Ongoing Spending Level Is Still Sustainable.
https://lao.ca.gov/Publications/Report/4687

The 2026-27 Budget: How to Use One-Time Revenue Improvements [Publication Details]

Feb 20, 2026 - The 2026-27 Budget: How to Use One-Time Revenue Improvements [Publication Details] Translate Our Website This Google ™ translation feature provided on the Legislative Analyst's Office (LAO) website is for informational purposes only.
https://lao.ca.gov/Publications/Detail/5133

The 2025-26 Budget: California's Fiscal Outlook

Nov 20, 2024 - Over the coming months, if California ’s labor market and consumers begin to show signs of a broadening recovery, the state ’s fiscal position is likely to be on better footing. It remains to be seen whether this will occur, but there are some conceivable paths toward broader improvements.
https://lao.ca.gov/Publications/Report/4939

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: Overview of the Spending Plan

Oct 16, 2025 - In addition to this report, we will release a series of issue ‑specific, online posts that give more detail on the major actions in the budget package. The Budget Problem For the third year in a row, the state faced a budget problem, or deficit.
https://lao.ca.gov/Publications/Report/5079

California's Legislative Analyst's Office and the Value of Independence

Nov 15, 2024 - Although aligning revenue estimates might reduce the potential for confusion, doing so would risk creating bigger problems. In particular, it could provide a false sense of certainty about the state ’s fiscal position.
https://lao.ca.gov/Publications/Report/4938

The 2024-25 California Spending Plan: Other Provisions

Oct 2, 2024 - Generative Artificial Intelligence (GenAI) Budget-Related Legislation Provides Legislative Oversight of GenAI Executive Order (EO). Chapter 35 of 2024 (SB 108, Wiener) requires the Government Operations Agency (GovOps) to establish monthly meetings with legislative staff to discuss implementation of EO N-12-23 , the state’s first EO on GenAI.
https://lao.ca.gov/Publications/Report/4934

The 2024-25 California Spending Plan: Other Provisions

Oct 2, 2024 - Generative Artificial Intelligence (GenAI) Budget-Related Legislation Provides Legislative Oversight of GenAI Executive Order (EO). Chapter 35 of 2024 (SB 108, Wiener) requires the Government Operations Agency (GovOps) to establish monthly meetings with legislative staff to discuss implementation of EO N-12-23 , the state’s first EO on GenAI.
https://lao.ca.gov/Publications/Report/4934/governors-office-of-emergency-services