LAO estimates an $18.5 billion structural deficit for California in 2026-27
Issue
On November 5, 2026, California’s Legislative Analyst’s Office estimated a structural deficit of $18.5 billion in 2026-27, even though the enacted budget is balanced. The office says an AI-driven stock rally is propping up tax collections and prices look overvalued.
Its Fiscal Outlook is due later in November. No health center is named.
Sources for this story
California Legislative Analyst’s Office (From Pandemic to AI Boom: The State Budget Since 2020, November 5, 2026)Part of
- California's budget, the health plan (MCO) tax and Proposition 35
The annual budget
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FQHC Talent. (2026, November 5). LAO estimates an $18.5 billion structural deficit for California in 2026-27. Source: California Legislative Analyst’s Office (From Pandemic to AI Boom: The State Budget Since 2020, November 5, 2026). Retrieved November 11, 2026, from https://www.fqhctalent.com/intel/ca-lao-structural-deficit-18-5-billion-state-budget-since-2020-november-2026