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

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

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

Jan 13, 2025 - Recent budgets have set the SFEU between $3.5  billion and $4  billion. The Governor proposes a $4.5  billion SFEU balance for the end of 2025 ‑26.
https://lao.ca.gov/Publications/Report/4951

The 2023-24 Budget: Multiyear Assessment

Feb 15, 2023 - Moreover, the Governor’s proposed spending level—as a share of the economy shown in Figure 3—remains above peaks from the early and mid‑2000s. None of these levels—both on the revenue and spending side—are consistent with shortfalls seen during recessions.
https://lao.ca.gov/Publications/Report/4687

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - This  is not a prediction of what will happen —state and federal laws and policies will change in the coming years —but rather serves as a baseline to help the Legislature understand its starting place.
https://lao.ca.gov/Publications/Report/5091

The 2024-25 California Spending Plan: Other Provisions

Oct 2, 2024 - Generative Artificial Intelligence (GenAI) Budget-Related Legislation Provides Legislative Oversight of GenAI Executive Order (EO). Chapter 35 of 2024 (SB 108, Wiener) requires the Government Operations Agency (GovOps) to establish monthly meetings with legislative staff to discuss implementation of EO N-12-23 , the state’s first EO on GenAI.
https://lao.ca.gov/Publications/Report/4934

The 2024-25 California Spending Plan: Other Provisions

Oct 2, 2024 - Generative Artificial Intelligence (GenAI) Budget-Related Legislation Provides Legislative Oversight of GenAI Executive Order (EO). Chapter 35 of 2024 (SB 108, Wiener) requires the Government Operations Agency (GovOps) to establish monthly meetings with legislative staff to discuss implementation of EO N-12-23 , the state’s first EO on GenAI.
https://lao.ca.gov/Publications/Report/4934/governors-office-of-emergency-services

The 2023-24 California Spending Plan: Other Provisions

Nov 8, 2023 - The existing film tax credit (Program 3.0) was set to sunset on June  30, 2025. This new iteration of the program includes set safety provisions under a new pilot program, refundability for tax credits, and new program elements aimed at increasing diversity in California ’s film industry.
https://lao.ca.gov/Publications/Report/4814

The 2022-23 California Spending Plan: Other Provisions

Sep 27, 2022 - SCO and CalHR expect the proposed CSPS IT project to complete the PAL process in the last quarter of the 2022-23 fiscal year and begin development and implementation of the project shortly thereafter.
https://lao.ca.gov/Publications/Report/4626