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LAO warns Assembly subcommittee of multibillion‑dollar out‑year gaps and urges a strict test for new spending

Assembly Budget Subcommittee for Climate, Resources, Energy and Transportation (California State Assembly) · March 4, 2026
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

The Legislative Analyst's Office told the subcommittee the governor's budget relies on borrowing and reserves and that the committee should apply a high bar to new ongoing spending, prioritizing health, safety and time‑sensitive functions.

Rachel Ehlers and other LAO staff presented the office's assessment of the state budget and a decision framework for the subcommittee.

Ehlers told members the state faces a precarious fiscal position despite recent revenue strength. "The budget proposal before you from the Governor relies on new borrowing, dollars 6,000,000,000 in…

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