Frequently asked questions concerning Facebook and California's General Fund

Aug 1, 2012 - For example,  if the recent weakness in Facebook stock causes a significant portion of worried "inside investors " (those with large blocks of Facebook stock prior to the IPO) to sell their shares in 2012, this increased stock trade  activity--and resulting income tax payments--could offset some of the state revenue weakness  that otherwise could result from Facebook 's depressed share price.
https://lao.ca.gov/Recommendations/Details/618

How Have Past Stock Market Downturns Affected Income Tax Revenue? [EconTax Blog]

Mar 9, 2026 - The Nasdaq composite, which includes the California headquartered companies Nvidia, Google, Facebook, Apple, AMD, and Broadcom, has doubled since 2023. The meteoric rise in the value of these companies has led to sizable gains for their investors and their employees via stock options, which has led income tax collections to grow at double-digit rates.  
https://lao.ca.gov/LAOEconTax/Article/Detail/852

How Have Past Stock Market Downturns Affected Income Tax Revenue? [EconTax Blog]

Mar 9, 2026 - The Nasdaq composite, which includes the California headquartered companies Nvidia, Google, Facebook, Apple, AMD, and Broadcom, has doubled since 2023. The meteoric rise in the value of these companies has led to sizable gains for their investors and their employees via stock options, which has led income tax collections to grow at double-digit rates.  
https://lao.ca.gov/LAOEconTax/article/Detail/852

The 2012-13 Budget: Economic and Revenue Update [Publication Details]

Feb 27, 2012 - The economy now is clearly improving in many important ways, including employment growth, but significant impediments block the state’s path to a more robust economic recovery. Like the economic data, reports concerning state revenues have been mixed recently too, with weakness in income tax payments accompanied by speculation concerning a future bonanza of tax revenues due to the possible offering of stock by Facebook, Inc.
https://lao.ca.gov/Publications/Detail/2578

LAO commentary on Facebook IPO and state revenue forecasts

May 15, 2012 - State tax revenue estimates regarding Facebook, therefore, require numerous assumptions. Because of these factors, there is a large margin of error surrounding both our Facebook revenue estimates and those of the administration.
https://lao.ca.gov/Recommendations/Details/596

Summary of LAO Findings and Recommendations on the 2012-13 Budget

Essentially, to avoid “double counting ” the Facebook income, this means that both of our revenue estimates consider the economy without Facebook and then add PIT revenues on top of those estimates to account for the IPO.
https://lao.ca.gov/laoapp/budgetlist/PublicSearch.aspx?PolicyAreaNum=70&KeyCol=596&Yr=2012

^[PDF] The 1989-90 Budget: Perspectives and Issues

:~Jl~,ct~diJQ'Y~r~11;l,lJ.9;~P.J'siE~tg(;lcJ¢Y~1~"i.()f..capital ,g~,t!!,~!p.S2m¥"r,~~~z,~gJ~K~t:lt~J~~p~y~r~.Foods which had been a.ppi-o- ,pHated; to 'the SFEU were' redireCted to cover the shortfall, and' several actions were taken by the administration to reduce or delay expenditures.
https://lao.ca.gov/analysis/1989/pandi_89_part1.pdf

^[PDF] The 2012-13 Budget: Overview of the Governor's Budget

The Facebook Effect. Facebook Inc., a privately held company headquartered in Palo Alto, may proceed with an initial public offering (IPO) of its stock in 2012. Facebook reportedly is considering 2012-13 BUDGET 16 Legislative Analyst’s Office www.lao.ca.gov issuing $10 billion of stock in an IPO that would value the company at over $100 billion.
https://lao.ca.gov/reports/2012/bud/budget_overview/budget-overview-011112.pdf

The 2017-18 Budget: Considering the State's Role in Elections

Mar 30, 2017 - Create Block Grant for Ongoing Support. We suggest the Legislature consider sharing in the cost of elections through a block grant. A block grant would provide counties state support to partially offset county costs to comply with a range of elections activities specified by the Legislature.
https://lao.ca.gov/Publications/Report/3634

What Is the Adult Education Block Grant?

Jan 6, 2016 - What Is the Adult Education Block Grant? January 6, 2016 What Is the Adult Education Block Grant? Chapter 13 of 2015 (AB 104, Committee on Budget), created the Adult Education Block Grant (AEBG). The 2015-16 Budget Act provided $500 million in ongoing Proposition 98 funding for the block grant.
https://lao.ca.gov/Publications/Report/3323