California’s budget increased cumulatively more than the maximum rate of population growth plus inflation in state funds and all funds from 2016-25, meaning taxes are higher than the average taxpayer can afford.
- The 2025 state funds budget is $133.3 billion higher than it would have been had spending grown at the rate of population growth plus inflation over the past decade.
- Because the state funds budget grew faster than population growth plus inflation for the last ten years, the state spent $560.7 billion too much.
- The 2025 funds budget is $189.8 billion higher than it would have been had spending grown at the rate of population growth plus inflation over the past decade.
- Because the all funds budget grew faster than population growth plus inflation over the past decade, the state spent $990.7 billion too much.



State Funds Budget Data
- Estimated FY 2026 Only State Funds Budget ($ Billions): $ 348.17
- FY 2027 Only State Funds Budget Limit ($ Billions): $ 359.22
- FY 2027 Only State Funds Budget Limit Growth (%): 3.17%
- Cost per person of only state funds budgeting more than pop+inf over the last decade in 2025 budget: $ 44,453
- Cost per family of 4 of only state funds budgeting more than pop+inf over the last decade in 2025 budget: $ 3,386
- Cumulative cost per person of only state funds budgeting more than pop+inf over the last decade from 2016-25: $ 14,248
- Cumulative cost per family of 4 of only state funds budgeting more than pop+inf over the last decade from 2016-25: $ 56,991
All Funds Budget Data
- Estimated FY 2026 All Funds Budget ($ Billions): $ 525.74
- FY 2027 All Funds Budget Limit ($ Billions): $ 542.42
- FY 2027 All Funds Budget Limit Growth (%): 3.2%
- Cost per person of all funds budgeting more than pop+inf over the last decade in 2025 budget: $ 69,617
- Cost per family of 4 of all funds budgeting more than pop+inf over the last decade in 2025 budget: $ 4,822
- Cumulative cost per person of all funds budgeting more than pop+inf over the last decade from 2016-25: $ 25,174
- Cumulative cost per family of 4 of all funds budgeting more than pop+inf over the last decade from 2016-25: $ 100,697
Other Economic and Fiscal Considerations
- Economic Freedom of North America (2023) (Rank): 47 [Fraser Institute]
- Economic Freedom (2022) (Rank): 48 [Cato Institute]
- Fiscal Policy (2022) (Rank): 48 [Cato Institute]
- Regulatory Policy (2022) (Rank): 49 [Cato Institute]
- State Tax Collections Per Capita (FY2021) ($): $6,325 [Tax Foundation]
- State Tax Collections Per Capita (FY2021) (Rank): 2 [Tax Foundation]
- State-Local Total Tax Burden per Capita (2022) ($): $10,167 [Tax Foundation]
- State-Local Tax Burden per Capita (2022) (%): 13.5% [Tax Foundation]
- State-Local Tax Burden per Capita (2022) (Rank): 46 [Tax Foundation]
- Top Income Tax Rate (2026) (%): 13.3% [Tax Foundation]
- Top Income Tax Rate (2026) (Rank): 50 [Tax Foundation]
- Flat/Progressive/Zero Income Tax (2026): P [Tax Foundation]
- Overall State Tax Competitiveness Index (2026) (Rank): 48 [Tax Foundation]
- Top Corporate Income Tax Rate (2026) (%): 8.8% [Tax Foundation]
- State-Local Sales Tax Rate (2026) (%): 8.8% [Tax Foundation]
- State-Local Sales Tax Rate (2026) (Rank): 46 [Tax Foundation]
- Property Taxes Paid as a Percentage of Owner-Occupied Housing Value (2023) (%): 0.7% [Tax Foundation]
- Property Taxes Paid as a Percentage of Owner-Occupied Housing Value (2026) (Rank): 27 [Tax Foundation]
- Economic Outlook (2025) (Rank): 47 [American Legislative Exchange Council]
- Economic Performance Rankings, 2013-2023 (2025) (Rank): 22 [American Legislative Exchange Council]
- Value for Tax and Expenditure Limits (0-3): 2 [American Legislative Exchange Council]
- Tax and Expenditure Limit (Rank): 3 [American Legislative Exchange Council]
- Right-to-Work Law (2025) (Y/N): N [American Legislative Exchange Council]
- State Spending per Capita (2022) ($): $ 9,231 [US Government Spending]
- State Spending per Capita (2022) (Rank): 41 [US Government Spending]
- Local Spending per Capita (2022) ($): $ 10,617 [US Government Spending]
- Local Spending per Capita (2022) (Rank): 49 [US Government Spending]
- Official Poverty Rate (2022-24) (%): 11.2 [Census Bureau]
- Official Poverty Rate (2022-24) (Rank): 33 [Census Bureau]
- Supplemental Poverty Rate (2022-24) (%): 14 [Census Bureau]
- Supplemental Poverty Rate (2022-24) (Rank): 42 [Census Bureau]
- Labor Force Participation Rate (Dec 2025) (%): 62.6% [Bureau of Labor Statistics]
- Labor Force Participation Rate (Dec 2025) (Rank): 27 [Bureau of Labor Statistics]
- Real Private Gross Domestic Product (2024) (Millions of $): $ 2,964,475 [Bureau of Economic Analysis]
- Real Private GDP (2024) (Rank): 1 [Bureau of Economic Analysis]
- Real Private GDP per Capita (2024): $ 75,308 [Bureau of Economic Analysis]
- Real Private GDP per Capita (2024) (Rank): 4 [Bureau of Economic Analysis]
- Real Private GDP Growth (2015-24) (%): 32.9% [US Bureau of Economic Analysis]
- Real Private GDP Growth (2015-24) (Rank): 12 [US Bureau of Economic Analysis]