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: California Spending Plan Series [Publication Details]

Oct 16, 2025 - The 2025-26 Budget: California Spending Plan Series [Publication Details] Translate Our Website This Google ™ translation feature provided on the Legislative Analyst's Office (LAO) website is for informational purposes only.
https://lao.ca.gov/Publications/Detail/5105

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 2023-24 Budget: Multiyear Assessment

Feb 15, 2023 - None of these levels—both on the revenue and spending side—are consistent with shortfalls seen during recessions. Because Recent Budgets Focused on One ‑Time and Temporary Spending, Ongoing Spending Level Is Still Sustainable.
https://lao.ca.gov/Publications/Report/4687

California's Legislative Analyst's Office and the Value of Independence

Nov 15, 2024 - Although aligning revenue estimates might reduce the potential for confusion, doing so would risk creating bigger problems. In particular, it could provide a false sense of certainty about the state ’s fiscal position.
https://lao.ca.gov/Publications/Report/4938

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

Jan 13, 2025 - Update (1/16/25): A set of tables detailing various solutions and proposals has been appended to the online version of this report. They are available using the HTML link above. On January 10, 2025, Governor Newsom’s administration presented its proposed state budget to the California Legislature.
https://lao.ca.gov/Publications/Report/4951/3

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

Jan 13, 2025 - Update (1/16/25): A set of tables detailing various solutions and proposals has been appended to the online version of this report. They are available using the HTML link above. On January 10, 2025, Governor Newsom’s administration presented its proposed state budget to the California Legislature.
https://lao.ca.gov/Publications/Report/4951/2