Understanding The State’s Astonishing Cash Position

Sep 16, 2026 - The excess arose from an unusual sequence of events: throughout 2022 ‑23, the Controller distributed funds to schools based on expenditure levels approved in June 2022 and 2023. However, a severe and unprecedented late ‑arriving decline in income tax revenues occurred at the same time, with collections down 25  percent.
https://lao.ca.gov/Publications/Report/5198

The 2026-27 California Spending Plan: Other Provisions

Oct 2, 2026 - Governor’s Office of Land Use and Climate Innovation The budget package provides $364  million for the Governor ’s Office of Land Use and Climate Innovation (LCI) in 2026-27, which represents a roughly $300  million reduction compared to estimated 2025-26 expenditures.
https://lao.ca.gov/Publications/Report/5205/

The 2026-27 Budget: Overview of the Spending Plan

Aug 26, 2026 - Major Features Tax Policy Extends Limitations on Business Tax Credits. Two years ago, the state temporarily increased corporation tax revenues by limiting the amount of tax credits a business can claim to $5  million for tax years 2024, 2025, and 2026.
https://lao.ca.gov/Publications/Report/5197

Understanding $100 Billion in Spending Growth: Causes and Fiscal Implications

Apr 28, 2026 - IT expenditures span both employee compensation —including salaries and benefits of state IT workers —and operating expenses and equipment, which include, for example, software licenses, hardware, and cloud services.
https://lao.ca.gov/Publications/Report/5176

The 2026-27 Budget: Overview of the Spending Plan

Aug 26, 2026 - CDCR = California Department of Corrections and Rehabilitation; FTB = Franchise Tax Board; UIS = unsatisfactory immigration status; Preschool = State Preschool; CDCR = California Department of Corrections and Rehabilitation; DOJ = Department of Justice; and IHSS = In ‑Home Supportive Services.
https://lao.ca.gov/Publications/Report/5197/2

The 2026-27 Budget: Initial Comments on the Governor's May Revision

May 18, 2026 - APS = Adult Protective Services; CDTFA = California Department of Tax and Fee Administration; CSAC = California Student Aid Commission; DOJ  =  Department of Justice; HBEX = California Health Benefit Exchange; HCD = Department of Housing and Community Development; IHSS = In ‑Home Supportive Services; and UIS = unsatisfactory immigration status Appendix 2, Figure 3 General Fund Spending Solutions (Reversions) Proposed in the 2026 ‑27 May Revision (In Millions)
https://lao.ca.gov/Publications/Report/5187/2

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

Jan 12, 2026 - The Special Fund for Economic Uncertainties (SFEU) is a general ‑purpose reserve commonly used to provide capacity for unanticipated expenditures, including state costs associated with disasters and other emergencies.
https://lao.ca.gov/Publications/Report/5101

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

Feb 20, 2026 - The 2026-27 Budget: How to Use One-Time Revenue Improvements The 2026-27 Budget How to Use One-Time Revenue Improvements Recent stock market performance continues to boost income tax collections. In our Fiscal Outlook , we strongly advised the Legislature to treat near-term strength in tax collections as temporary because we expect these gains to reverse.
https://lao.ca.gov/Publications/Report/5133

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 2026-27 Budget: How to Use One-Time Revenue Improvements [Publication Details]

Feb 20, 2026 - Recent stock market performance continues to boost income tax collections. In our Fiscal Outlook, we strongly advised the Legislature to treat near-term strength in tax collections as temporary because we expect these gains to reverse. Further, the state faces significant structural deficits in the future.
https://lao.ca.gov/Publications/Detail/5133