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Assembly Budget Committee opens review of governor's budget as LAO warns of market-driven revenue risk
Summary
The Assembly Budget Committee heard an overview of the governor's January budget, which DoF described as a "workload" proposal with roughly $350 billion in spending and $42.3 billion in upgraded revenues; the LAO urged caution, warning that stock-market concentration creates downside risk and recommending stronger reserve treatment and structural deficit action.
SACRAMENTO — The California State Assembly Budget Committee on Wednesday opened its formal review of the governor's January budget, hearing a Department of Finance presentation of a balanced yet cautious "workload" proposal and a Legislative Analyst's Office warning that the state's revenue gains are concentrated and vulnerable to a market downturn.
Erica Lee, chief deputy director of budget for the Department of Finance, told the committee the governor's 2026-27 proposal shows about $350 billion in expenditures, roughly $248 billion in General Fund spending and an aggregate revenue upgrade of about $42.3 billion driven largely by capital gains and higher withholding. "We are looking at roughly 42,300,000,000 in revenues compared to the budget act," Lee said during her overview.
The administration described the plan as a workload…
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