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

Feb 20, 2026 - Figure 1 The State ’s New Wall of Debt (In Billions)
https://lao.ca.gov/Publications/Report/5133

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

California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - First, despite a $42  billion upgraded revenue estimate, the Governor ’s proposal nevertheless cited a $3  billion deficit under DOF assumptions. Second, the Governor proposed suspending a $2.8  billion true-up deposit to the state ’s reserve that otherwise would be required.
https://lao.ca.gov/Publications/Report/5104

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - The state solved a $27  billion deficit in 2023 ‑24, a $55  billion deficit in 2024 ‑25, and a $15  billion deficit in 2025 ‑26 (in addition to roughly $28  billion in proactive budget ‑balancing actions taken the year before).
https://lao.ca.gov/Publications/Report/5091

The 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - As shown in Figure  2, the 2025 ‑26 spending plan includes nearly $10  billion in new borrowing, increasing total outstanding budgetary borrowing from $12  billion to  $22  billion. Figure 2 The State ’s New Wall of Debt (In Billions)
https://lao.ca.gov/Publications/Report/5079

The 2025-26 Budget: Initial Comments on the Governor's May Revision

May 17, 2025 - The May Revision primarily addresses the budget problem through spending ‑related solutions —totaling $9.5   billion —which include reductions ($4.9  billion), fund shifts ($3.2  billion), and delays ($1.3  billion).
https://lao.ca.gov/Publications/Report/5044

The 2025-26 Budget: Multiyear Budget Outlook

May 24, 2025 - These deficits range from $10  billion to $20  billion through 2028-29. As such, the Governor ’s approach to the May Revision reflects the reality of the budget challenge before the Legislature. While the Governor focuses solutions in Medi-Cal —constituting $11  billion of the total $16  billion in solutions —the Legislature could pursue a different mix of spending and/or revenue solutions than those proposed.
https://lao.ca.gov/Publications/Report/5052

The 2025-26 Budget: Overview of the Governor's Budget

Jan 13, 2025 - In total, the Governor ’s budget assumes that state operations costs are reduced by $2.1  billion ($1  billion General Fund) in 2024 ‑25 and $2.6  billion ($1.4  billion General Fund) in 2025 ‑26 and ongoing.
https://lao.ca.gov/Publications/Report/4951

The 2024-25 Budget: Initial Comments on the Governor’s May Revision

May 17, 2024 - We Estimate Governor Addressed a $55  Billion Budget Problem. The Governor cites a budget problem of $27  billion. Under our estimates, the administration addressed a larger deficit than this —$55  billion.
https://lao.ca.gov/Publications/Report/4902

The 2025-26 Budget: California's Fiscal Outlook

Nov 20, 2024 - These choices included about $11  billion in spending ‑related solutions and $15  billion in all other solutions, including $5.5  billion in temporary revenue increases and a $7  billion withdrawal from the state ’s rainy ‑day fund .
https://lao.ca.gov/Publications/Report/4939