California Legislative Analyst’s Office (LAO)

Governor Newsom Signs ‘Historic Balanced State Budget’ with Structural Deficit

July 1, 2026 12:57 pmJuly 1, 2026 1:30 pm

On June 29, 2026, Governor Gavin Newsom signed the 2026-2027 state budget. Before your eyes glaze over, here is how the governor characterized it: “Governor Newsom signs historic balanced state budget, cementing California’s fiscal strength and investing in the state’s...

CA Budget: Legislative Analyst says ‘State is Ill-Prepared if Revenues Drop’

May 18, 2026 5:01 pmMay 18, 2026 5:01 pm

Last week California Governor Gavin Newsom released his May budget revise, and blamed the President’s policies–especially tariffs– for contributing to a worsened budget outlook. And then he claimed his final May budget revise is “miraculously balanced.” The California Legislative Analyst’s...

Governor Gavin Newsom Gaslights his Way Through the May Budget Revision

May 14, 2026 2:27 pmMay 15, 2026 1:33 pm

“Governor Newsom’s revised budget proposal is a fiscally disciplined, balanced plan that cuts the long-term deficit by more than half and tightens Sacramento’s belt — while supporting our most vulnerable Californians amid Donald Trump’s cruel assault on the state,” says...

California’s $125 Billion Death Spiral

March 8, 2026 5:00 amMarch 9, 2026 3:02 pm

Newsom is betting his last budget on AI stocks his own analysts call overheated. Four straight deficit years. A $35 billion structural gap incoming. And a pension system that makes all of it worse. We’ve seen this movie. It ended...

California’s Latest HUD Fiasco: Another Massive Abuse Of Taxpayer Dollars

December 31, 2025 1:41 pmJanuary 7, 2026 10:00 pm

A damning U.S. Housing and Urban Development (HUD) report exposed $5.8 billion in questionable rental assistance payments in FY 2024 under the Biden administration—over 11 percent of nearly $50 billion disbursed nationwide. The 183-page Agency Financial Report detailed payments to...

CA 2025-2026 State Budget Deficit at $2 Billion, Expected To Grow Exponentially

November 21, 2024 2:45 amNovember 21, 2024 2:46 am

The Legislative Analyst’s Office unveiled the California state budget forecast for the 2025-2026 fiscal year on Wednesday, showing a $2 billion deficit for the year, but with the number expected to grow exponentially if more cuts aren’t made soon. California’s...

Newsom’s Budget Revisal Proposes 10,000 Vacant State Jobs Being Cut, Cuts To 260 State Programs

May 11, 2024 7:45 amMay 11, 2024 7:45 am

During his May revised 2024-2025 state budget proposal announcement on Friday, Governor Gavin Newsom proposed cutting around 10,000 vacant state jobs, as well as spending to 260 state programs. Back in January, Governor Newsom released his first 2024-2025 state budget...