Long-term Capacity for Debt Payments Under Proposition 2

Dec 21, 2017 - LAO Bottom Line Our analysis of existing Proposition  2 commitments by the Legislature and Governor suggests that, under the existing set of agreements for Proposition  2 debt funding priorities, there may be little ongoing capacity for additional debt funding commitments from this source until at least the mid-2020s.
https://lao.ca.gov/Publications/Report/3727

The 2024-25 Budget: Proposition 2 Debt Payment Proposals

Mar 20, 2024 - In 2023 ‑24, the CalSTRS Board set the state ’s supplemental rate to 6.311  percent (the same rate the state has paid for the past few years), while the “unconstrained ” actuarially required rate —what the CalSTRS Board could set as the state ’s rate if it had full rate ‑setting authority to meet the goal of eliminating unfunded liabilities by 2046 —would be around 3.5  percent according to CalSTRS ’ most recent actuarial valuation.
https://lao.ca.gov/Publications/Report/4887

The 2021-22 Budget: The Governor’s Proposition 2 Proposals

Apr 26, 2021 - The amount projected for 2021 ‑22 is higher than what previous budgets have assumed for the budget year (see Figure  2). As the figure shows, recent budgets have tended to underestimate capital gains, meaning the estimates are below the actuals.
https://lao.ca.gov/Publications/Report/4418

Evolution of the Balance of the Budget Stabilization Account

Nov 14, 2018 - Proposition  58 explicitly permitted the Legislature to transfer amounts into the BSA so that its balance exceeded either of these thresholds. Deposit Made Under Rules of Proposition  58 in 2014 ‑15 Budget Package.
https://lao.ca.gov/Publications/Report/3900

The 2020-21 Budget: Proposition 2 Debt Payment Proposals

Mar 10, 2020 - Unlike the CalPERS pension system with full rate setting authority or the CalSTRS system with limited rate setting authority, there is no automatic mechanism to increase contribution rates to retiree health benefits when new unfunded liabilities are created.
https://lao.ca.gov/Publications/Report/4196

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

California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - As we described in our November Fiscal Outlook , the recent stronger-than-expected revenue trends are almost entirely explained by the personal income tax (PIT), which has seen double digit growth this year.
https://lao.ca.gov/Publications/Report/5104

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

The 2017-18 Budget: Alternatives to the Governor’s Proposition 2 Proposals

Feb 23, 2017 - Minimum Debt Payment Requirements Set by Proposition   2 Estimates. Figure  2 illustrates the steps in determining the amount of required debt payments under Proposition  2. First, the state must set aside 1.5  percent of General Fund revenues (we refer to this as the “base amount ”).
https://lao.ca.gov/Publications/Report/3574