California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - After the dot-com bust and the Great Recession, it took four and five years, respectively, for revenues to recover. Incorporating revenue risk into the budget now, therefore, reflects prudence, not pessimism.
https://lao.ca.gov/Publications/Report/5104

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - For California, the dot ‑com era —when stocks rose and then fell precipitously in response to widespread adoption of the internet —offers the most salient example. The internet has proven to be a transformative technology and, yet, the stock market ’s initial reaction was clearly overly exuberant.
https://lao.ca.gov/Publications/Report/5091

Building Reserves to Prepare for a Recession

Mar 7, 2018 - By most measures, the recession of the early 1990s was more severe than the dot ‑com bust in the early 2000s. For example, unemployment in California reached 9. 7  p ercent in mid ‑ to late ‑1992, but peaked at 6. 9  p ercent after the dot ‑com bust.
https://lao.ca.gov/Publications/Report/3769

The 2018-19 May Revision: LAO Economic Outlook

May 12, 2018 - The typical PE ratio since 1990 is 21 (19 if the dot-com bubble of the late 1990s and early 2000s is excluded). Similar to the price-to-earnings ratio, the home price-to-rent ratio is used to gauge if home prices are in line with underlying demand for housing.
https://lao.ca.gov/Publications/Report/3829

The 2019-20 Budget: Overview of the Governor's Budget

Jan 14, 2019 - The federal Patient Protection and Affordable Care Act sought to reduce the number of people without health insurance coverage in part by imposing a financial penalty on those without health insurance (known as the “individual mandate ”).
https://lao.ca.gov/Publications/Report/3916

The 2019-20 Budget: California Spending Plan—Debt Liabilities

Oct 17, 2019 - Special Fund Loans Throughout the 2000s, particularly in response to the dot-com bust and Great Recession, the state loaned amounts to the General Fund from other state accounts, particularly special funds to address General Fund budget problems.
https://lao.ca.gov/Publications/Report/4106

Managing California’s Cash

Sep 3, 2019 - After a period of relative calm in the mid ‑ and late ‑1990s, California faced another series of years with acute budget problems following the dot ‑com bust and ensuing recession. Although the dot ‑com bust was relatively mild in economic terms, it hit the California budget —which is particularly reliant on the Bay Area ’s technology sector —especially hard.
https://lao.ca.gov/Publications/Report/4092

The 2019-20 Budget: California Spending Plan (Final Version)

Oct 17, 2019 - Health and Human Services Increases monthly CalWORKs grants ($332 million General Fund in 2019 ‑20, $442 million General Fund ongoing). Increases most DDS service provider rates ($126 million General Fund in 2019 ‑20, $253 million General Fund ongoing). a Expands health care coverage and increases affordability ($550  million General Fund in 2019 ‑20).
https://lao.ca.gov/Publications/Report/4083

Supplemental Report of the 2019-20 Budget Act [Publication Details]

Aug 2, 2019 - Supplemental Report of the 2019-20 Budget Act [Publication Details] Translate Our Website This Google ™ translation feature provided on the Legislative Analyst's Office (LAO) website is for informational purposes only.
https://lao.ca.gov/Publications/Detail/4084

The 2019-20 Budget: California's Fiscal Outlook

Nov 14, 2018 - This year ’s DOF letter on the sales tax triggers noted that —under the budget act estimates of revenues and reserve balances —the conditions for neither of these triggers were met. Decisions made by the Legislature in the 2019 ‑ 20 b udget process will affect whether the provisions are triggered in November 2019.
https://lao.ca.gov/Publications/Report/3896