How has CA general fund expenditure increased in the past five years
Executive summary
California’s General Fund spending has climbed markedly in recent years from roughly $175 billion in 2021–22 (budget-window context) toward a projected $229 billion in 2025–26, driven largely by higher Medi‑Cal costs and increased Proposition 98 (K‑14 education) obligations [1] [2] [3]. Multiple 2025‑26 analyses put year‑over‑year General Fund growth in health programs alone at about $7.5 billion (20.1% increase for Medi‑Cal) and an overall Governor’s projection of roughly $229 billion General Fund in 2025‑26 [3] [2].
1. Bigger budget, bigger General Fund: the headline numbers
California’s main operating account has expanded into the high‑hundreds of billions: nonprofit and policy trackers summarize the state budget as a roughly $495.6 billion total budget for 2025‑26 with the General Fund and special funds combined at about $296.7 billion of revenue, and the General Fund itself projected by the administration at about $229 billion in 2025‑26 [4] [2]. The Legislative Analyst’s Office (LAO) and news outlets concur that portions of this increase reflect both one‑time windfalls and ongoing commitments, producing sizable nominal increases over the past few fiscal years [4] [2].
2. Health spending is the principal driver—Medi‑Cal growth
Medi‑Cal spending is a central engine of General Fund growth: LAO figures show total Medi‑Cal spending rising to $197 billion across all fund sources in 2025‑26, with a $7.5 billion (20.1%) General Fund increase that year compared with the prior revised level; other summaries place Medi‑Cal General Fund at a record $42 billion in 2025‑26, about $4.5 billion higher year‑over‑year [3] [5]. Advocacy and budget analyses attribute much of the increase to enrollment growth, pharmacy costs, and policy expansions that raise baseline costs [3] [6].
3. Education: Proposition 98 and rising entitlements
Education obligations under Proposition 98 and related “settle‑up” payments push General Fund spending higher. The LAO estimates Prop. 98 requirements and settle‑up raise General Fund school and community college spending by several billion dollars across the 2024‑25 to 2026‑27 window—LAO specifically cites a roughly $5.1 billion increase tied to formula changes and a near $7 billion increase versus prior estimates when adding settle‑up effects [7]. The state has also shifted the distribution among K‑12 and community colleges and made targeted ongoing augmentations, which embed higher baseline General Fund commitments [8] [7].
4. One‑time vs. ongoing: how much growth is permanent?
Analysts and the administration differentiate one‑time windfalls from ongoing spending. The Governor’s 2025‑26 plan uses one‑time savings and reserves to cover some current‑year costs but leaves substantial ongoing increases—particularly in Medi‑Cal and Prop. 98—that will sustain higher General Fund baselines [8] [3]. LAO notes a mix of a “large one‑time windfall” for schools and modest ongoing increases, signaling that part of the headline growth does not represent recurring revenue [7] [8].
5. Political framing and competing narratives
Political actors frame the same numbers differently. The Governor’s office emphasizes an ability to expand services and boost reserves as revenues outperformed forecasts and projects a $229 billion General Fund in 2025‑26 [2]. The Republican Senate caucus highlights record Medi‑Cal General Fund spending and attributes increases to policy choices like expansions and wage mandates [5]. Budget advocates and county groups cite increased General Fund capacity but stress tradeoffs—cuts to some higher education lines and shifted funding sources are mentioned across sources [2] [5] [9].
6. What the sources do not say (limitations)
Available sources do not provide a single, line‑by‑line five‑year table of General Fund totals by fiscal year in the materials provided; they supply snapshots, program‑level increases (particularly for Medi‑Cal and Proposition 98), and multi‑year windows rather than a neat annual series for 2019–20 through 2025–26 (not found in current reporting). For a precise year‑by‑year percentage change across the past five fiscal years you would need the state’s enacted General Fund expenditure tables or consolidated LAO year‑by‑year figures not included among the documents provided here (not found in current reporting).
7. Bottom line and context for readers
General Fund expenditures have risen substantially in the latest budget window, with health (Medi‑Cal) and education (Proposition 98) driving most of the growth and the administration projecting roughly $229 billion General Fund in 2025‑26; however, part of the increase reflects one‑time receipts and formula “settle‑up” items while ongoing program commitments lock in higher baseline spending [3] [2] [7]. Readers seeking a precise five‑year change in dollars and percent should consult the state’s enacted budgets and LAO year‑by‑year tables for General Fund expenditures to get an exact annual series (not found in current reporting).