Controller Malia M. Cohen Unveils California’s Audited Financial Reality Ahead of Governor’s May Revise

SACRAMENTO - Today, State Controller Malia M. Cohen released the State's Financial Report, the Annual Comprehensive Financial Report (ACFR), providing a clear, independently verified snapshot of California's financial condition for the fiscal year ending June 30, 2025.

For the first time in eight years, California lawmakers, taxpayers, bond markets, and the public will have access to timely audited financial information before major budget decisions are finalized and ahead of Governor Gavin Newsom's May Revise budget proposal. Today's report carries an unmodified audit opinion.

The Governor's May Revise outlines where California intends to go. The ACFR explains where California actually is financially.

Prepared under Government Code requirements and independently reviewed under Government Auditing Standards, the ACFR is not a projection, a proposal, or a political document. It is the audited financial record of what occurred during the fiscal year.

The report provides a comprehensive accounting of the State's revenues, spending, long-term obligations, and assets. The numbers published today provide taxpayers, policymakers, and financial markets a clear look at how California is balancing its books.

"Before California debates the future, Californians deserve to understand the audited truth about the past," said Controller Cohen. "Budgets tell Californians what leaders hope will happen. Audited financial statements tell Californians what actually occurred in in the last fiscal year. Today's report carries an unmodified audit opinion."

"As the state's Chief Fiscal Officer, my job is to make sure Californians can clearly see how their dollars are being managed, where we are making progress, and where we face real challenges," Cohen added. "Transparency is how we build trust and move California forward. This is not just a report for accountants or bond markets, it's a report for the people of California."

The FY 2024-25 ACFR represents the fastest turnaround on record for a financial report of California's size and complexity, completed just eight months after the prior report and returned to its Spring publication target.

Why This Matters to Californians

This comprehensive reporting of California's 2025 spending connects numbers to real impacts in the lives of Californians:

• Lower borrowing costs = more money for services

Delivering a timely, reliable financial accounting strengthens investor confidence, helping lower interest rates on bonds that fund schools, roads, and housing.

• Early warning signs on fiscal challenges

The report highlights long-term obligations like pensions and debt, helping policymakers address risks before they turn into budget cuts or tax increases.

• See how billions are spent

Taxpayers can see how funding flows into major programs like education, health care, and infrastructure - and whether spending aligns with priorities.

• Stronger oversight against waste or mismanagement

This financial reporting is validated by professional auditors and accountants. The California State Auditor independently reviews the report, ensuring accuracy and accountability.

"At the end of the day, this report is about trust," said Controller Cohen. "Californians want to know how their government is performing, not just in good times, but in challenging ones. It is about whether Californians can trust that someone is telling them the financial truth."

• More than $595.5 billion in revenues
• More than $582.5 billion in expenditures
• Approximately $1.2 trillion in fiduciary assets held in trust
• Financial reporting from 201 state entities
• 37 independent audit reports
• More than 1,780 departmental financial statement packages

The Annual Comprehensive Financial Report spans 350 pages and is produced in partnership with the California Department of Finance and more than 200 state entities. It is independently reviewed in accordance with Government Auditing Standards.

Controller Cohen will also continue advancing efforts to modernize California's financial transparency systems through simplified public-facing reporting tools, visual financial summaries, and expanded financial literacy initiatives designed to make state finances more understandable and accessible to the public.

To learn more, visit the ACFR website at 2024-2025 California ACFR.

What They Are Saying…

"California's economic strength depends on public trust, fiscal discipline, and transparent financial reporting. As we continue navigating Donald Trump's economic uncertainty while making critical investments in California's future, this timely financial information is essential." - Governor Gavin Newsom, Office of the Governor

"California's financial strength depends on trust, transparency, and timely information. Controller Cohen's release of the Annual Comprehensive Financial Report ahead of the May Revision represents an important step toward restoring timely audited reporting for the largest state economy in the nation. Bond markets, credit rating agencies, taxpayers, and policymakers all benefit when audited financial facts are available before major fiscal decisions are made. This report reinforces California's commitment to sound financial stewardship and accountability." - State Treasurer Fiona Ma, Office of the State Treasurer

"The timely release of the ACFR reflects a strong partnership across state government and demonstrates California's commitment to fiscal transparency and responsible financial management. The Controller's Office, Department of Finance, state agencies, and the State Auditor all played critical roles in delivering an independently audited picture of California's financial condition in June. This report provides an important foundation for understanding the state's fiscal position and long-term obligations." - Joe Stephenshaw, Director, California Department of Finance

"California's economy is one of the most dynamic and complex in the world, and timely audited financial reporting is fundamental to maintaining market confidence and long-term economic stability. Controller Cohen's efforts to improve the timeliness and accessibility of California's financial reporting represent an important step toward strengthening fiscal accountability and public trust." - Rob Lapsley, President, California Business Roundtable

"Taxpayers cannot hold government accountable without timely financial facts. Publishing audited financial information before major budget decisions are finalized is an important step toward restoring public confidence in California's fiscal transparency." - Rob Gutierrez, President & CEO, CalTax

"Cities across California depend on clear and reliable fiscal information from the state to make decisions regarding essential services including police and fire, infrastructure, housing, and transportation. The release of a timely audited financial report reflects a meaningful commitment to transparency, accountability, and stronger coordination between state and local governments." Carolyn Coleman, President/CEO, League of California Cities

"Counties rely on accurate and timely state financial information to plan local services, prepare budgets, and manage long-term obligations. The timely release of California's audited financial statements strengthens transparency across all levels of government and helps local agencies better understand the fiscal landscape impacting communities throughout the state." - Graham Knauss, Chief Executive Officer, California State Association of Counties