California Legislative Analyst's Office

The Legislative Analyst's Office (LAO), located in Sacramento, California, is a nonpartisan government agency that has provided fiscal and policy advice to the California Legislature since 1941. The office is known for analyzing the state budget with the aim of making government programs more effective and less costly. The LAO was the first such institution in the United States that was designed to help both houses of a legislature manage the state budget in a strictly nonpartisan fashion; it inspired the creation of many similar agencies in other states, as well as the creation of the nonpartisan Congressional Budget Office in 1974. The LAO should not be confused with the California Legislative Counsel (a position established in 1913) which does not focus primarily on the budget. The LAO is overseen by the Joint Legislative Budget Committee (JLBC), a 16-member bipartisan committee. The office has a staff of 43 analysts and approximately 13 support staff. The analytical staff is divided into four subject areas: Corrections, Environment, and Transportation; State and Local Finance; Education; and Health and Human Services. The Office was founded when the JLBC appointed the first "Legislative Auditor" on October 8, 1941 to assist with the state budgeting process. Because it was frequently confused with the state auditor, the title was changed to "Legislative Analyst" in 1957.