COVID-19 and California’s Evolving Fiscal Outlook

Mar 18, 2020 - Given that it will take time to appraise the ultimate effects on the state, the Legislature may need to take incremental steps —like adopting a workload budget in the nearer term —to buy time beyond its constitutional deadline to pass the budget (June 15) to assess the state ’s ultimate fiscal capacity.
https://lao.ca.gov/Publications/Report/4203

With New Deficits Looming, California Will Weigh its Options for Allocating a Large Revenue Windfall

Dec 1, 2020 - Prudently managed, this fiscal cushion can buy time for the Legislature to phase-in policy changes while simultaneously allowing it to protect legislative priorities. Subscribe | California State Legislature | Online Voter Registration | Privacy Policy | Accessibility Legislative Analyst's Office | The California Legislature's Nonpartisan Fiscal and Policy Advisor 925 L Street, Suite 1000 Sacramento, CA 95814 | (916) 445-4656
https://lao.ca.gov/Publications/Report/4305

The 2023-24 Budget: Considering Inflation's Effects on State Programs

Nov 16, 2022 - Real Value The real value of a dollar refers to the amount of goods and services that dollar can buy. Over  time, the real value of a dollar decreases due to inflation. For example, suppose the state spends $100,000 to provide services to ten people.
https://lao.ca.gov/Publications/Report/4647

The 2017-18 Budget: Overview of the Governor's Budget

Jan 13, 2017 - Some years, the Legislature has decided to cover all spending increases using state General Fund support, explicitly “buying out ” tuition increases or otherwise holding student tuition levels flat. Other years, both state General Fund support and tuition levels have been raised.
https://lao.ca.gov/Publications/Report/3528

The 2020-21 Budget: California's Spring Fiscal Outlook

May 8, 2020 - Reserves serve as an interim solution, buying lawmakers time to implement those longer ‑term reductions. Unlike past recessions, when the state had virtually no reserves and deep cuts were immediately necessary, the state ’s reserves will cushion the coming budget crunch.
https://lao.ca.gov/Publications/Report/4228

Managing California’s Cash

Sep 3, 2019 - In short, having this significant cushion buys the Legislature time and likely will allow the state —including the Controller and Treasurer —to anticipate a cash problem in advance. Those entities will then have time to take corrective actions before a crisis occurs.
https://lao.ca.gov/Publications/Report/4092

Cap-and-Trade Extension: Issues for Legislative Oversight

Dec 12, 2017 - To make up the difference, covered entities would need to either buy more allowances or reduce more emissions directly. As a result, there could be higher allowance prices. Assembly Bill  398 also establishes the Compliance Offsets Protocol Task Force, made up of different stakeholder representatives appointed by CARB, to provide guidance on ways to increase offset projects with direct environmental benefits in the state.
https://lao.ca.gov/Publications/Report/3719