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 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - Amid these conditions, California businesses have pared back hiring, resulting in no payroll job growth in the state so far this year. California consumers similarly are limiting spending, with sales of taxable goods flat over the last year.
https://lao.ca.gov/Publications/Report/5091

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 2025-26 Budget: Undertaking Fiscal Oversight

Feb 24, 2025 - As such, the Legislature must determine how to focus its efforts so as to provide information that would be most helpful in making future budget decisions. This section offers some questions to determine how to focus those efforts.
https://lao.ca.gov/Publications/Report/4983

Rethinking California's Reserve Policy

Apr 10, 2025 - A reserve policy “performs well ” if it meets the central goal of reserves —that is, it allows the state to save enough so that the state can pay for spending on its core services when revenues drop.
https://lao.ca.gov/Publications/Report/5028

The 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - Notably, this cost shift is intended to continue on an ongoing basis—meaning costs incurred in 2026‑27 would be recognized in 2027‑28, and so on. Undoing this maneuver in the future will require the state to pay for two years’ worth of program costs in a single fiscal year.
https://lao.ca.gov/Publications/Report/5079

Whether or Not to Tap Reserves to Solve Estimated Budget Problem Emerges as Key Fiscal Decision Facing California’s Legislature

Apr 19, 2023 - Other downturns, such as the 2001 so-called dot-com recession, had severe fiscal implications while inflicting somewhat milder economic damage. The 2008 Great Recession had brutal effects on both the state ’s economy and budget.
https://lao.ca.gov/Publications/Report/4762

New Inflation Poses Not So New Budget Risk

Dec 15, 2022 - New Inflation Poses Not So New Budget Risk Search In Fiscal Perspectives , the Legislative Analyst periodically offers the Legislature his views on fiscal matters facing California. New Inflation Poses Not So New Budget Risk December 15, 2022 Tweet Gabriel PetekLegislative Analyst Persistent high inflation presents federal and state policymakers with an economic problem not seen in roughly four decades.
https://lao.ca.gov/Publications/Report/4653

Despite Fiscal Forecasting Uncertainties, Multiyear Budget Planning Essential

May 27, 2021 - Building on these policy-related benefits, another reason for regularly preparing multiyear fiscal estimates is that doing so sends a reassuring signal to financial markets and the state ’s creditors.
https://lao.ca.gov/Publications/Report/4443

Overview of the 2008 Special Session Proposals [Publication Details]

Nov 10, 2008 - The state’s revenue collapse is so dramatic and the underlying economic factors are so weak that we forecast huge budget shortfalls through 2013‑14 absent corrective action. From 2010‑11 through 2013‑14, we project annual shortfalls that are consistently in the range of $22 billion.
https://lao.ca.gov/Publications/Detail/1893