California Legislative Analyst's Office

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The Legislative Analyst's Office (LAO), located in Sacramento, California, has been providing fiscal and policy advice to the California Legislature for more than 65 years. It is known for its fiscal and programmatic expertise and nonpartisan analysis of the state budget. The office serves as the "eyes and ears" for the Legislature to ensure that the executive branch is implementing legislative policy in a cost efficient and effective manner.

The LAO is overseen by the Joint Legislative Budget Committee (JLBC), a 16-member bipartisan committee. The office currently has a staff of 43 analysts and approximately 13 support staff. The analytical staff is divided into ten subject areas: Criminal Justice; Economics, Revenues, and Taxation; K-12 Education; Higher Education; Health; Local Government; Resources and Environmental Protection; Social Services; State Administration; and Transportation, Business, and Housing.

Historically, one of the most important responsibilities of the LAO has been to analyze the annual Governor's budget and publish a detailed review at the end of February. This document, the Analysis of the Budget Bill, includes individual department reviews and recommendations for legislative action. A companion document, Perspectives and Issues, provides an overview of the state's fiscal picture and identifies some of the major policy issues confronting the Legislature. These documents help set the agenda for the work of the Legislature's fiscal committees in developing a state budget. Staff of the office work with these committees throughout the budget process and provide public testimony on the office's recommendations.

More generally, the office is a staff resource to all legislators. The LAO also performs the following functions:

Budget "Control." The LAO reviews requests by the administration to make changes to the budget after it is enacted. These reviews are used primarily by members of the JLBC and the fiscal committees.

Special Reports. Throughout the year, the office prepares special reports on the state budget and topics of interest to the Legislature.

Initiatives and Ballot Measures. The office estimates the fiscal effect on state and local government of all proposed initiatives (prior to circulation) and prepares analyses of all measures that qualify for the statewide ballot.