California
California Storm: Power Outages, Wind, Rain | Weather.com
- At least three people were killed by falling trees in California.
- Rivers of mud rushed through streets in the Los Angeles area.
- An avalanche was reported in the Lee Canyon area of Nevada, about 30 miles northwest of Las Vegas.
A powerful atmospheric river left at least three people dead in California, knocked out power to hundreds of thousands of homes and businesses and sent search-and-rescue crews scrambling to an avalanche near Las Vegas.
More than 10 inches of rain have fallen in some parts of California and wind gusts well over 100 mph have been reported in some higher elevations.
(MORE: Where We Expect The Rain To Continue)
The flooding is expected to persist into Tuesday, so here’s the latest news on the areas hit hardest.
Death Toll Increased To 3
At least three people were reported dead in the storm.
Among those who died were two men killed by fallen trees Sunday in Carmichael, a suburb of Sacramento, and in Boulder Creek in Santa Cruz County. Police had previously confirmed the death of another man in Yuba City, about 100 miles northeast of San Francisco, who was found under a redwood tree in his backyard Sunday.
Update On Historic Rainfall Totals From Southern California
Downtown Los Angeles picked up 7.03 inches of rain Sunday and Monday, which ranks as the third-most for any two-day period on record for the city.
The highest rainfall total in the Los Angeles area is 11.81 inches in Bel Air.
Los Angeles City Reports Hundreds Of Mudslides
A report from the Los Angeles Fire Department says there had been 307 mudslides in its area of responsibility as of 4:15 p.m. local time on Monday. Thirty-five buildings will need to be inspected due to either mudslides or slope failures, and five buildings have been red-tagged, meaning no entry is allowed.
See The ‘Firehose’ In Action
When we talk about an atmospheric river, this satellite loop of moisture is a perfect example. Watch the way the “firehose” of moisture just points at one area of Southern California and stays locked in for hours. It’s the reason why some parts of the region got 10 to 12 inches of rain during this event.
Here’s The Scene In The Higher Elevations
In this photo provided by the Mammoth Mountain Ski Area, a truck is covered in snow in Mammoth Lakes, California, on Monday, Feb. 5, 2024.
(Hudson Henry/Mammoth Mountain Ski Area via AP)
It wasn’t just the rain that fell near the coast – in the higher elevations, snow was plentiful, which was a welcomed sight to some ski areas. At Mammoth Mountain, up to 3 feet of snow fell in 24 hours, according to the ski resort’s website.
It was a much-needed boost to California’s snowpack, which was barely half of average a week ago.
Ski patrols were out surveying the slopes for any avalanche danger, and as a result, chairlift delays were expected at the resort.
Here were Monday’s updates as the storm pummeled the region:
(7:09 p.m. ET) The Rain Isn’t Over Yet
From weather.com digital meteorologist Madeline Scheinost: The heaviest of the rain will continue through Tuesday in parts of Southern California, with a flood threat continuing through tomorrow there. In the northern part of the state, showers are still lingering bringing a more localized flood threat.
See the full forecast here.
(6:57 p.m. ET) Everyone Safe In Nevada Avalanche
Las Vegas police just issued this update: “Four people were initially reported missing. Everyone has been located and is safe. We are currently assisting people off the mountain.”
(6:52 p.m. ET) Cars, Emergency Vehicles Stuck On Road At Lee Canyon After Avalanche
Cars and emergency vehicles are stuck and a line of traffic is backed up waiting to get out of Lee Canyon, according to a social media post.
(6:39 p.m. ET) Las Vegas Police Ask Public To Stay Away From Avalanche Area
The avalanche is in the Lee Canyon – Mt. Charleston area, according to an email from the Las Vegas Metro Police Department.
“Residents and the public are urged to avoid the area,” the email said. “LVMPD Search and Rescue is responding due to several people being reported missing at this time.”
(6:02 p.m. ET) Several People Reported Missing In Lee Canyon, Nevada, Avalanche
From a social media post a few minutes ago by Las Vegas Metro Police: “Metro Police Search & Rescue is en route. We are trying to locate several people who are reported missing.
Conditions are hazardous due to the weather. Please avoid the area until the weather and conditions improve. We will have more information soon.”
(5:47 p.m. ET) Avalanche Reported In Nevada
Emergency officials are responding to an avalanche in Lee Canyon, Nevada. The exact location wasn’t clear, but the area is home to the Lee Canyon ski area, located about 30 miles northwest of Las Vegas.
The area is under a winter storm warning until 10 p.m. local time Tuesday night.
A post on the ski area’s Facebook page earlier today noted 11.5 inches of new snowfall over the previous 24 hours.
“If you’re coming up to the mountain, anticipate delays & snow chain restrictions,” the post Drive carefully y’all.”
(5:11 p.m. ET) Storm Ramps Up Avalanche Danger
Avalanche warnings are in place for much of the Sierra Nevada.
From the Eastern Sierra Avalanche Center: “Though snowfall rates peaked early last night, wind loading onto a snowpack with a weak base will continue to create very dangerous avalanche conditions today. Very large natural avalanches from above threaten the slopes below. Avoid being on or underneath steep terrain until the snowpack adjusts to the new load.”
Here’s what to know.
(4:49 p.m. ET) Evacuations Canceled For Santa Barbara County, Schools Reopening Tomorrow
Evacuation orders in Santa Barbara County were lifted at noon local time, or 3 p.m. ET. Residents are advised to be aware of road conditions and watch out for loose or fallings, according to the latest update from the county.
Most schools in the area will reopen tomorrow, with the exception of three that are still being assessed.
(4:28 p.m. ET) Climate Change Is Turbocharging Atmospheric Rivers
“These rivers of moisture in the atmosphere are not new and are vital to the West Coast as a major source of water and snowpack,” weather.com meteorologist Kait Parker says. “But 85 percent of flooding in this region is caused by atmospheric rivers.”
These kinds of storms are only expected to get more extreme as our atmosphere and oceans warm, pumping more moisture into the air.
Learn more from Parker here.
(4:15 p.m. ET) Still A Steady Rain
From weather.com senior meteorologist Jonathan Erdman: While it’s not the type of heavy rain you’ll see in Florida in summer, rainfall rates in parts of L.A. County from near LAX to the San Fernando Valley are still from one-quarter to one-half inch per hour.
Even at those modest rates, this rain cannot soak into saturated ground. And those rates are high enough to trigger additional flooding, rockslides and debris flows.
A flash flood warning continues for the Santa Monica Mountains and Hollywood hills until 3 pm PT, or 7 p.m. ET.
(3:55 p.m. ET) Power Outages Drop Below 400,000
After peaking at nearly a million late Sunday night, the number of power outages reported statewide dropped to less than 400,000, according to PowerOutage.us. Most are customers of Pacific Gas & Electric, the state’s biggest utility provider. Santa Clara County had the most outages, around 56,000.
(2:48 p.m. ET) Protect Yourself From Carbon Monoxide Poisoning
With hundreds of thousands of power outages still being reported in California, it’s important to remember to never run a portable generator in any enclosed space or close to one. Doing so can cause deadly carbon monoxide poisoning. Here are some other ways to stay safe:
-Make sure you have battery powered carbon monoxide detectors in your home. The International Association of Fire Chiefs recommends at least one per level, and that they be placed less than 10 feet from bedroom doors.
-Know the proper operating procedures for your generator.
-Position portable generators outdoors well anyway from any structure. Experts recommend at least 15 to 20 feet, but that can vary according to wind and other conditions.
-Inspect and test run your generator annually.
-Using outdoor grills or other alternative heating devices inside can also cause carbon monoxide poisoning.
(2:23 p.m. ET) Second Death Connected To Storm
A person was killed in Boulder Creek, near Santa Cruz, when a tree fell onto a home.
First responders were called to the scene around 3:20 p.m. local time Sunday.
“One resident made it out of the house but another was trapped inside,” Ashley Keehn, public information for the Santa Cruz County Sheriff’s Office, told weather.com in a phone call a few minutes ago.
“Unfortunately the resident inside sustained injuries from the tree falling into the home and was pronounced dead at the scene.”
The death is the second confirmed to be connected to the storm. The first was in Yuba City, located north of Sacramento in Sutter County.
(1:58 p.m. ET) Rainfall Tops 10 Inches
Here are the latest rainfall numbers from Los Angeles County:
-Topanga, 10.8 inches
–Stunt Ranch, 10.75 inches
–Bel Air, 10.59 inches
-Woodland Hills, 10.4 inches
Cars sit buried by a mudslide, Monday, Feb. 5, 2024, in the Beverly Crest area of Los Angeles.
(AP Photo/Marcio Jose Sanchez)
(1:50 p.m. ET) Resident Describes Moment Mudslide Hit Neighborhood
Travis Longcore, who lives in the Beverly Glen area of Los Angeles, told KTLA-TV a house near his was washed away.
“We heard a very loud rumbling sound and thought something exploded. But it was the house, probably powered by a debris flow, coming out into the road…it then hit another house and crushed a carport next to our property,” Longcore said.
No one was hurt, but the contents of the home – including a piano – were washed into the street.
“[The mudslide] sheared off the gas line … my neighbor was out and noticed the gas line and I was starting to smell it,” Longcore said “So, we all basically self-evacuated and the fire department came and evacuated another person who was unable to get out through her front door.”
(1:28 p.m. ET) It’s Not Just Rain
Snow is piling up in higher elevation ski areas as the storm moves through. These are some of the highest 24-hour totals:
–Mammoth Mountain, 33 inches
–June Mountain Ski, 31 inches
–Northstar Ski, 27 inches
(1:04 p.m. ET) Shelters Open Around Los Angeles
At least seven shelters are open in the Los Angeles area. Five are for affected residents and two are for large animals including horses and livestock. The city’s Emergency Management Department has this map listing the locations, as well as area road closures and evacuations.
(12:48 p.m. ET) Dangerous Weather Heading East
From weather.com senior meteorologist Dina Knightly: “The heavy rainfall and flooding in Southern California will move into Arizona Tuesday and Wednesday. Rainfall up to 1.5 inches is possible in some areas, with excessive runoff causing flooding along creeks and streams. Road closures are likely and residents should remain alert.”
(12:35 p.m. ET) Power Outages Dropping
About 500,000 power outages are being reported statewide, down from nearly a million late last night, according to PowerOutage.us. Most are customers of Pacific Gas & Electric, California’s largest utility provider.
“PG & E has more than 3,000 employees engaged in this event to assess damage, make repairs and handle emergency calls, and hundreds more staffed in emergency operations support centers across our service area,” the company said in a news release.
“Members of the public should use caution and remain vigilant for hazards including weakened trees, flooding and downed power lines.”
A garage door is seen damaged by a storm, Monday, Feb. 5, 2024, in Studio City, California.
(AP Photo/Marcio Jose Sanchez)
(12:20 p.m. ET) Los Angeles Resident: ‘I Can’t Believe It’
Keki Mingus, who lives in the Studio City section of Los Angeles, told The Associated Press she received a text Sunday night alerting her that a nearby home was in trouble.
“Mud, rocks and water came rushing down through their house and another neighbor’s house and into our street,” Mingus said as water continued to rush down the road around dawn on Monday. “I can’t believe it. It looks like a river that’s been here for years. I’ve never seen anything like it.”
Mud and debris are strewn on Fryman Road during a rain storm, Monday, Feb. 5, 2024, in Studio City California.
(AP Photo/Marcio Jose Sanchez)
(12:06 p.m. ET) Latest Photos Show Damaged Vehicles, Mud Rushing Down Streets
Los Angeles
Jeffrey Raines clears debris from a mudslide at a parent’s home during a rainstorm, Monday, Feb. 5, 2024, in Los Angeles.
(AP Photo/Ethan Swope)
Studio City
A car is damaged by debris from a storm, Monday, Feb. 5, 2024, in Studio City, California.
(AP Photo/Marcio Jose Sanchez)
(11:20 a.m. ET) Water Rushes Through Santa Barbara Botanic Garden
Video posted by the garden shows a muddy torrent of water from Mission Creek rushing over a historic dam yesterday.
The area is normally accessible by walking, but was closed due to the weather.
“However, thanks to the work of our grounds crew and volunteers, trails and areas along the creek are holding up and there is no damage to the garden,” an update posted to social media.
Portions of the garden will reopen today.
(10:51 a.m. ET) Sierra Nevada Winds Gust Up To 162 MPH
“The Sierra Nevada is known for some prolific wind gusts in these kinds of storms, but this is impressive even by those standards,” weather.com senior meteorologist Chris Dolce says.
The Sierra Nevada mountain range runs along the California-Nevada border and includes Mt. Whitney and Yosemite National Park.
Here’s a look at some of the peak wind gusts at the highest elevations in the region:
–Alpine Meadows/Ward Mountain, 162 mph
–Palisades Tahoe/Siberia, 148 mph
–Mammoth Mountain Summit, 125 mph
(10:20 a.m. ET) Mud And Debris Flows Force Residents From Homes In Los Angeles
More than a dozen people had to be evacuated from the Laurel Canyon area as a rushing torrent of rocks, mud and other debris flowed down a hill on a residential street.
The Weather Channel’s Justin Michaels is on the scene.
(10:08 a.m. ET) 10 People, Including A Baby, Rescued From Vehicles
First responders pulled several people from vehicles stuck on a flooded road in the Topanga Canyon area of Los Angeles County, KCAL-TV reported. Those rescued included a baby.
Rescues were ongoing in the area overnight. Besides flooding, boulders and mud also blocked some roads.
Evacuation orders were in place in the area due to fears of mudslides and debris flows in wildfire burn scar areas.
(9:15 a.m. ET) These Are The Top Rain Totals So Far
Some staggering rainfall totals are coming in from the National Weather Service, and there’s plenty more rain on the way. These are two-day totals:
-Topanga Canyon: 9.94 inches
-Stunt Ranch: 9.86 inches
-Sepulveda Canyon: 9.57 inches
-Woodland Hills: 9.29 inches
-Bel Air: 9.25 inches
(8:50 a.m. ET) Rescues Ongoing Amid The Floods
Dangerous conditions have prompted more water rescues in parts of Southern California. In areas where burn scars from past wildfires are still present, mudslides and debris flows have also occurred.
We have new visuals coming in from the areas hit hardest; meteorologist Domenica Davis walks you through it all here.
(8:25 a.m. ET) As Santa Barbara Flooded, Police Went Door-To-Door
As roads became swamped and creeks were overwhelmed with flood water, some police in Santa Barbara needed armored vehicles to traverse the flooded roads and go door-to-door to evacuate residents, NBC News reported. This was occurring last night.
Several parts of the city were placed under mandatory evacuations as the flooding worsened.
A police officer notifies a resident of rising floods during a rainstorm, Sunday, Feb. 4, 2024, in Santa Barbara, Calif.
(AP Photo/Ethan Swope)
(8 a.m. ET) California Storm, By The Numbers
102 mph: Top wind gust report. This was clocked on Sunday at Pablo Point in Marin County.
9.86 inches: Top rainfall report at Stunt Ranch Reserve in the Santa Monica Mountains at 1,305 feet in elevation.
6 feet: This is the upper range of how much snow was expected to fall in the highest elevations of the Sierra Nevada. No totals this high have been measured yet, but this is what the forecast called for.
(7:40 a.m. ET) Authorities Confirm Death In Yuba City
In a social media post late Sunday night, the Yuba City Police Department confirmed that a man was killed when a redwood tree fell on top of him. It was the first death confirmed to be caused by the atmospheric river storm striking California.
“Paramedics began lifesaving measures, however, the male was never revived,” said the police department. Through the investigation, it appeared he was possibly using a ladder to try and clear the tree away from his residence when it fell on him.”
It’s believed that the tree fell some time around 5 p.m. local time Sunday.
“This was an unfortunate accident and our condolences are with the male’s family and friends,” the post also read.
(7:15 a.m. ET) Where’s The Biggest Concern This Morning?
From weather.com senior meteorologist Chris Dolce:
The most persistent rain through the morning rush hour will be over much of the Los Angeles metro area. In particular, locations from the Santa Monica Mountains eastward through Hollywood Hills and Beverly Hills areas are seeing the most serious flooding, which is where 5 to 9 inches of rain has fallen, prompting the National Weather Service to issue a “particularly dangerous situation” flash flood warning.
Locations farther south, from around downtown Los Angeles to around Oceanside, are in flood advisories for light to moderate rainfall. Commuters this morning could see flooded roads and should avoid driving through any floodwaters.
(6:30 a.m. ET) Nearly 600,000 Customers Still Without Power
Though the numbers declined overnight, some 587,000 homes and businesses are still in the dark across California, according to PowerOutage.us.
If you’re ever facing a power outage, these tips will be very helpful to remember.
(5:30 a.m. ET) Los Angeles Picks Up A Month’s Worth Of Rain In One Day
Downtown Los Angeles was soaked by 4.1 inches of rain on Sunday. That’s more than the city averages in the entire month of February (3.64 inches). It was also enough to clinch their third-wettest February day on record.
Over the last two days, L.A. has recorded 5.48 inches of rain. The city needs at least 5.58 inches of rain to clinch one of their 10 wettest two-day stretches on record.
(5:09 a.m. ET) ‘Particularly Dangerous Situation’ Flash Flood Warning In Effect
The National Weather Service (NWS) issued this urgent flash flood warning for the Hollywood Hills area and near the Santa Monica Mountains until 9 a.m. local time. A report from the NWS stated there was excessive street flooding in the area with multiple vehicles floating in the Hollywood Hills to Sherman Oaks and Studio City areas.
(5:00 a.m. ET) More Than 100 Reports Of Flooding, Landslides
Since this storm began, there have been at least 101 reports of flooding and landslides submitted to the National Weather Services across the state of California. The blue icons in this map below show where those flooding and landslide reports are located.
You can read our updates from Sunday here.
The Weather Company’s primary journalistic mission is to report on breaking weather news, the environment and the importance of science to our lives.
key takeaway
California’s state budget reserves, including the “rainy day fund” and other reserve accounts, serve as a financial safety net for services like education, health care, and child care during economic downturns. The rules for depositing and withdrawing funds are complex, and policymakers should consider reforms, such as excluding reserve deposits from the Gann Limit spending cap, to strengthen the state budget’s resilience during a recession.
Introduction
California has several state budget reserves. These reserves help to maintain essential public services — like education, health care, and child care — when revenues fall short, such as during recessions. Reserves aren’t for everyday spending, but rather a financial safety net for the state.
This report describes California’s state budget reserves, explains how funds can be accessed and used, and discusses proposals to reshape these reserves that have been floated in recent years. For more information about California’s reserve accounts, see the Budget Center’s companion resources, including this video — California’s State Budget Reserves Explained — and this fact sheet — 5 Key Questions About California’s State Budget Reserves.
state budget Reserves in a nutshell
- The Budget Stabilization Account (BSA), or “rainy day fund,” holds revenues to support any program funded through the state budget.
- The Public School System Stabilization Account (PSSSA), or schools reserve, periodically holds revenues to support K-12 schools and community colleges.
- The Safety Net Reserve periodically holds revenues intended to support the CalWORKs and Medi-Cal programs.
- The Special Fund for Economic Uncertainties (SFEU) holds revenues to cover unexpected state budget costs during a fiscal year.
- The Projected Surplus Temporary Holding Account can be used to temporarily set aside some anticipated surplus revenues and avoid spending funds that may not materialize.
Budget Stabilization Account (BSA): California’s Largest Reserve
The BSA is California’s largest state budget reserve. Deposits into and withdrawals from this “rainy day fund” are based on complex rules that were added to the state Constitution by Proposition 2 of 2014. Key rules include the following:
An annual deposit is required. Prop. 2 requires that 1.5% of General Fund revenues be set aside every year. Until 2029-30 half of these revenues must be deposited into the BSA and the other half must be used to pay down certain state debts. Beginning in 2030-31, the entire amount must be deposited into the BSA, although state leaders will have the option of redirecting up to one-half of each year’s deposit to pay down debts.
In some years, the state must set aside additional General Fund revenues. This occurs in years when estimated General Fund revenues that come from personal income taxes on capital gains exceed 8% of total General Fund proceeds of taxes. The share of these “excess” capital gains revenues that is not owed to K-12 schools and community colleges under the state’s Prop. 98 funding guarantee must be used for BSA deposits and debt repayments, following the same requirements as the mandatory 1.5% deposit. Since Prop. 2 was enacted, capital gains tax revenues have exceeded the 8% threshold in most years, but could fall below the threshold in years when there are downturns in the stock market.
State leaders may also make discretionary deposits. In addition to the mandatory annual deposits required by Prop. 2, policymakers have the option of saving additional, discretionary revenue in the BSA.
The required annual deposit may be reduced or suspended in the event of a “budget emergency. If the governor declares a budget emergency, the state may reduce or suspend the required BSA deposit with a majority vote of each house of the Legislature. Prop. 2 defines a budget emergency as a situation where:
- Conditions of disaster or extreme peril are present; or
- The state has insufficient resources to maintain General Fund expenditures at the highest level of spending in the three most recent fiscal years, adjusted for state population growth and the change in the cost of living.
BSA funds may be withdrawn in the event of a budget emergency, but the entire balance cannot be removed at once. If the governor declares a budget emergency and the Legislature agrees with a majority vote of each house, funds may be taken out of the BSA. However, the entire balance cannot be removed immediately. Only the amount needed to address the budget emergency may be withdrawn, subject to the additional limitation that a withdrawal may not exceed 50% of the BSA balance in the first year of a budget emergency. In the second consecutive year of a budget emergency, all of the funds remaining in the BSA may be withdrawn.
Funds that are taken out of the BSA may go toward any purpose determined by the Legislature. For example, these dollars could be used for health care services, subsidized child care for working families, cash assistance for people with low incomes, K-12 schools, and any number of other public services and systems.
Funds in the BSA cannot exceed 10% of General Fund tax revenues. Prop. 2 caps the balance of the BSA. Once the balance — excluding any discretionary deposits — reaches 10% of General Fund tax revenues, any revenue that would otherwise have been required to go into the reserve must be instead spent on infrastructure, which includes housing. Prior to 2026, the BSA balance reached the cap twice — in 2022-23 and 2023-24 — but then dropped below the cap as state leaders withdrew funds in some years to address budget shortfalls.
Prop. 2 of 2014 also established the PSSSA, the state’s budget reserve for California’s K-12 schools and community colleges. Prop. 2 does not require an annual deposit into this reserve. Moreover, Prop. 2 restricts the circumstances under which transfers to the PSSSA can occur. For a PSSSA deposit to be required, all of the following conditions must be met:
- General Fund revenues that come from personal income taxes on capital gains are relatively strong;
- Growth in General Fund revenues leads to relatively strong growth in the state’s annual minimum funding guarantee for K-12 schools and community colleges; and
- The Legislature does not suspend the annual K-14 education minimum funding guarantee.
Even under these restricted circumstances, Prop. 2 limits the size of the deposit to the schools reserve when such a deposit is required.
Deposits to the PSSSA may be reduced or suspended in the event of a budget emergency under the same rules that govern reductions or suspensions of deposits to the BSA (see the prior section of this report). Similarly, funds may be withdrawn from the schools reserve if the governor declares a budget emergency and the Legislature agrees with a majority vote of each house.
In contrast to the rules governing the withdrawal of funds from the BSA, all of the PSSSA funds may be withdrawn in one year. Moreover, funds withdrawn from the PSSSA must be used to support K-12 schools and community colleges.
Safety Net Reserve: Funds to Protect the Medi-Cal and CalWORKs Programs
The Safety Net Reserve was created in 2018 to set aside funds to help cover the costs of two programs that often see increases in enrollment during recessions: Medi-Cal and California Work Opportunity and Responsibility to Kids (CalWORKs). Both of these programs serve Californians with low incomes — with Medi-Cal delivering health coverage, and CalWORKs providing modest cash assistance to families with children. During economic downturns, more people become unemployed and temporarily rely on these programs to cover their basic needs, increasing state costs.
The Safety Net Reserve is not a constitutional reserve, so there are no binding requirements governing deposits or withdrawals. This means that funds can be transferred into and withdrawn from the reserve at the discretion of the Legislature. In fact, state policymakers voluntarily deposited $900 million in the Safety Net Reserve before draining all of those funds in 2024 to help address a $55 billion state budget problem.
Moreover, while state law specifies that the funds are to be used only for Medi-Cal and CalWORKs costs during economic downturns, state policymakers could decide to modify this language and use the funds for other purposes. However, in establishing this reserve, policymakers clearly recognized the need to protect critical services for Californians with low incomes from budget cuts — cuts that would undermine Medi-Cal and CalWORKs at the very time that these programs are needed most.
Special Fund for Economic Uncertainties (SFEU): The Discretionary Reserve
The SFEU is the state’s discretionary General Fund budget reserve, meaning policymakers have a great deal of latitude in spending the funds in the reserve. The amount of money in the SFEU is equal to the difference between General Fund resources and General Fund spending in a given fiscal year.
The SFEU acts as a buffer against unanticipated revenue shortfalls or spending increases. Due to California’s constitutional balanced-budget requirement, which requires the state to enact a budget in which spending does not exceed available resources, the projected SFEU balance cannot be less than zero at the time the annual budget is adopted. However, if state revenues come in lower than projected and/or spending unexpectedly rises, the SFEU balance will decline, and may become negative as spending begins to exceed revenues.
The Legislature can appropriate funds from the SFEU at any time and for any purpose. Additionally, in the event of a disaster, the governor can allocate funds from the SFEU without the prior approval of the Legislature. Specifically, when the governor declares a state of emergency, the Department of Finance (DOF) can transfer funds from the SFEU into a subaccount called the Disaster Response-Emergency Operations Account (DREOA). These funds are allocated to state agencies for costs that are “immediate and necessary to deal with an ongoing or emerging crisis.”
Projected Surplus Temporary Holding Account: A Place to Set Aside Anticipated Surplus Revenues
State leaders created the Projected Surplus Temporary Holding Account in 2024. This account gives policymakers a place to temporarily set aside anticipated surplus revenues, “ensuring that funds are only spent once they are realized.”
State leaders have broad authority to determine whether or how to use this holding account. The only requirement is that revenues that go into the account cannot remain there for longer than one year. If state revenues materialize as projected, the revenues in the account may be spent for any purpose or transferred back to the General Fund for future use.
This holding account is a “pilot budgeting project” that expires at the end of 2030, although state leaders could approve an extension as well as potentially modify the rules.
What’s Next for California’s State Budget Reserves?
The rules that govern California’s budget reserves can be amended by voters or state policymakers. Changing the reserve rules established by Prop. 2 (2014) would require voters to approve a constitutional amendment. Other reserve rules can be changed by state policymakers without the need for voter approval.
In recent years, state policymakers and others have advanced proposals to revise California’s reserve policies, although none have moved beyond the conceptual stage. Common proposals for changing state reserve policies include the following:
Proposals to increase the share of state General Fund revenue deposited into the Budget Stabilization Account (BSA), or rainy day fund.
Proposals to allow the balance of the BSA to grow beyond 10% of annual state General Fund revenue.
Proposals to exclude reserve deposits from California’s spending cap, or “Gann Limit.”
Changes to the rainy day fund or the Gann Limit would require amending the state Constitution. This means that voters would have the last word on the most significant proposals to modify California’s state budget reserves.
An e-bike boom is sweeping across Northern California, with more young riders taking to the streets than ever before.
Inside California Ebikes in Fair Oaks, owner Erica Frith says business has taken off.
What started as a small operation out of a local gym in 2020 quickly grew into a storefront by 2022, and demand hasn’t slowed.
“We’re getting about 100 out the door a month,” Frith said.
But for her, it’s not just about sales, it’s about the experience.
“There’s only a few things in life that create a childlike smile and happiness, and bike riding is one of them,” she said.
With more bikes on the road, service demand is also climbing. Shop service manager Jesse Cristo says keeping up means relying on years of hands-on experience.
“You have an e-bike industry that’s fledgling, but it’s a five billion dollar a year industry,” Cristo said.
At a recent safety panel in El Dorado Hills, residents and leaders came together to address concerns about young riders on the road.
“The safety around this area has been really scary,” said resident Liz Kmiec. “I have witnessed multiple scenes where these kids do not recognize the danger they’ve put themselves in.”
For law enforcement, the focus is on education, especially for parents.
“Education is huge,” said CHP Officer Andrew Brown. “We’ve been getting out to schools, community events, and sharing information to make sure parents know what they’re buying their kids.”
As the e-bike boom continues to grow, leaders say the challenge will be making sure safety keeps up.
California
6 California men plead guilty to violence against CHP officers during Los Angeles immigration protests
Six men have pleaded guilty in federal court for acts of violence against California Highway Patrol officers. They were accused of throwing rocks, fireworks and other debris during an anti-immigration enforcement protest last year.
Prosecutors said that on the evening of June 8, 2025, a group of protestors downtown Los Angeles at the Main Street overpass of the 101 Freeway targeted law enforcement officers, essentially trapping them under the freeway overpass while throwing burning objects at them.
Three men pleaded guilty on Wednesday, while three others entered their guilty pleas earlier in the week.
Adam Charles Palermo, 40, of Rampart Village; Ismael Vega, 41, of Westlake; and Yachua Mauricio Flores, 23, of Lincoln Heights were part of a group of protestors who lit cardboard and vegetation on fire, as well as fireworks, and dropped them from the freeway overpass, targeting a CHP vehicle, according to prosecutors. The vehicle caught fire. Flores also poured a liquid on the flames, igniting them further.
Palermo pleaded guilty to one felony count of assaulting, resisting, and impeding persons assisting federal officers and employees with a deadly or dangerous weapon. He faces a statutory maximum of 20 years in federal prison.
Vega and Flores each pleaded guilty to one felony count of obstructing, impeding, and interfering with law enforcement during a civil disorder. Both face a statutory maximum sentence of five years in federal prison.
Balton Montion, 25, LA County resident at the time, Ronald Alexis Coreas, 23, of Westlake and Junior Roldan, 27, of Hollywood, threw rocks at law enforcement officers who attempted to clear the freeway overpass.
Coreas and Roldan each pleaded guilty to one misdemeanor count of simple assault on a person assisting a federal officer. Each faces a statutory maximum of one year in federal prison.
Montion pleaded guilty to one felony count of obstructing, impeding, and interfering with law enforcement during a civil disorder. He faces a statutory maximum sentence of five years in federal prison.
Palermo has been in federal custody since August 2025. The other defendants remain free on bond.
United States District Judge John F. Walter scheduled sentencing hearings in the coming months for these defendants
Another defendant, Jesus Gonzalez Hernandez, Jr., 22, of Las Vegas, is scheduled to plead guilty on May 4 to one misdemeanor count of simple assault on a person assisting a federal officer.
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