The 2026-27 Budget [Publication Details]

Jan 1, 2026 - As we release publications aimed at addressing the 2026-27 budget situation, we will add them to this index page.
https://lao.ca.gov/Publications/Detail/5107

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - Instead, our forecast includes income tax collections that are somewhat weaker than suggested by cash trends, but still tens of billions of dollars above where they would be if stocks actually drop significantly.
https://lao.ca.gov/Publications/Report/5091

Rethinking California's Reserve Policy

Apr 10, 2025 - Chapter 2: Where Are We Now? In 2014, voters approved significant reforms to the state ’s reserve policy with Proposition  2. This measure substantially improved the state ’s reserve policy, particularly relative to recent history.
https://lao.ca.gov/Publications/Report/5028

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

Jan 13, 2025 - Two key areas where these savings have eroded are in the managed care organization (MCO) tax package and reductions to state operations. These are described in the box below. The forthcoming Appendix 1 will also provide a full list of the solutions from the 2024 ‑25 budget package that generate savings in 2025 ‑26.
https://lao.ca.gov/Publications/Report/4951

The 2025-26 Budget: Undertaking Fiscal Oversight

Feb 24, 2025 - Where the state has implemented expansions of state-federal partnerships, however, there typically is greater fiscal flexibility. Can the Entire Program Be Evaluated, or Should Oversight Focus on Specific Components?
https://lao.ca.gov/Publications/Report/4983

The 2024-25 Budget: Deficit Update

Feb 20, 2024 - As a result, reductions tend to be concentrated in these areas because they are the ones where the state has the most flexibility to reduce spending without raising issues related to requirements imp osed by courts, the voters, and the federal government.
https://lao.ca.gov/Publications/Report/4850

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

May 17, 2024 - This often occurs, for example, when the state overestimates uptake in a new program or as a routine matter in programs where spending is uncertain due to factors like caseload. When actual state costs are below budgeted amounts, a reversion occurs after a period of time —typically , three years.
https://lao.ca.gov/Publications/Report/4902

The 2024-25 Budget: Overview of the Governor's Budget

Jan 13, 2024 - This often occurs, for example, when the state overestimates uptake in a new program or as a routine matter in programs where spending is uncertain due to factors like caseload. When actual state costs are below budgeted amounts, a reversion occurs after a period of time—typically, three years.
https://lao.ca.gov/Publications/Report/4825

The Definition of Qualified Capital Outlay for the State Appropriations Limit

Feb 18, 2022 - In some cases, the state might purchase a group of assets (for example, multiple tiny homes or a fleet of vehicles) where each individual purchase (a tiny home, including the land it sits on, or a vehicle) is worth less than $100,000, but the value of the entire purchase is much greater.
https://lao.ca.gov/Publications/Report/4547

The 2022-23 Budget: Medi-Cal Fiscal Outlook

Nov 17, 2021 - We describe the fiscal implications of this assumption, as well as of the alternative scenario where the PHE is extended beyond early 2022, in further detail later in this post. Fiscal Outlook Assumes Current State and Federal Law and Policy.
https://lao.ca.gov/Publications/Report/4474