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

California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - Because of how sensitive California ’s revenues are to stock market performance, the Governor ’s approach yields a revenue estimate that is $30  billion above that of our office. Regardless of the revenue assumption used in the 2026-27 budget, both our office and the Governor ’s Department of Finance (DOF) agree that the state faces large structural deficits.
https://lao.ca.gov/Publications/Report/5104

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

Jan 12, 2026 - As such, the administration ’s revenue estimate exceeds ours by almost $30  billion across the budget window (2024 ‑25 through 2026 ‑27). This  higher revenue assumption substantially improves the budget condition relative to our forecast and is the main driving difference between our estimates of the deficit.
https://lao.ca.gov/Publications/Report/5101

The 2023-24 Budget: Multiyear Budget Outlook

May 23, 2023 - Across all programs in this agency (including, for example, Medi ‑Cal, In ‑Home Supportive Services, developmental services, and child care), our estimates are $6  billion higher than the administration ’s projection by 2026 ‑27.
https://lao.ca.gov/Publications/Report/4772

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - Moreover, we estimate costs in other programs to be about $6  billion higher than anticipated. Starting in 2027 ‑28, we estimate structural deficits to grow to about $35  billion annually due to spending growth continuing to outstrip revenue growth.
https://lao.ca.gov/Publications/Report/5091

Rethinking California's Reserve Policy

Apr 10, 2025 - Setting aside all capital gains revenues would increase the state ’s spending on both debt payments and reserve deposits before 2029 ‑30. After 2029 ‑30, the Legislature could choose to dedicate all of these requirements to reserves.
https://lao.ca.gov/Publications/Report/5028

The 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - As of June 30, 2025, $335.9  million exclusively from the General Fund had been allocated through the control sections by DOF for these purposes. After the special session, the sections were amended to allow funds to be used to reimburse local governments through June 2026 for (1)  unmet response and recovery costs, and (2)  lost property tax revenue.
https://lao.ca.gov/Publications/Report/5079

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

Oct 2, 2018 - This increase is due to a 6. 1  p ercent increase in LCFF funding, offset by a slight expected decrease in TK average daily attendance. Clarifies Licensing Standards for LEA ‑Run State Preschool Programs.
https://lao.ca.gov/Publications/Report/3870/4

The 2023-24 Budget: Overview of the Spending Plan (Final Version)

Oct 16, 2023 - Appendix 4, Figure 6 Remaining Large One ‑Time and Temporary Augmentations From the 2021 ‑22 and 2022 ‑23 Budget Packages: Public Safety General Fund (In millions) Organized Retail, Motor Vehicle, and Cargo Theft Prevention Grants (Public Safety Package) $85 Augmentation to California Violence Intervention and Prevention Program 66 Note: Includes augmentations above $50 million BSCC = Board of State and Community Corrections.
https://lao.ca.gov/Publications/Report/4788/4

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

Oct 2, 2018 - DOF must then notify the Joint Legislative Budget Committee of its determination within 30 days. This strategy is meant to ensure fund solvency if actual revenue is lower than $2. 6  b illion. Certain programs —most notably $ 200  m illion to CARB for light ‑duty ZEV rebates —are not be subject to the 75  p ercent restriction.
https://lao.ca.gov/Publications/Report/3870/9