California faces $18 billion budget deficit in 2026-27

(The Center Square) - The Legislative Analyst’s Office released its outlook on the 2026-27 budget, highlighting the state’s weak position and an $18 billion shortfall. The nonpartisan office releases the report annually to give the Legislature an idea of its starting point before the Assembly and Senate convene each January. The main causes of the 2026-27 budget problems, the Legislative Analyst’s Office reported, include obligations to school and community college funding established by the passage of Proposition 98, which California voters passed in 1988. Main causes also include debt and reserve deposit requirements, which the state has to pay for in its annual budget, as established by Proposition 2, passed in 2014. The funds the Legislature would have to allocate to pay for the expenses related to those two propositions would exceed almost all of the $11 billion gain in revenue the state raked in during the last year. The Legislative Analyst’s Office told The Center Square on Frid