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

Building Reserves to Prepare for a Recession

Mar 7, 2018 - However, even the dot ‑com bust in the early 2000s, which in economic terms was more moderate, led to over $ 80  b illion in losses. Budget Problem. A budget problem represents the amount by which expenditures exceed revenues in a given year.
https://lao.ca.gov/Publications/Report/3769

The 2016-17 Budget: California Spending Plan

Oct 5, 2016 - Green Infrastructure Projects ($80   Million). The budget provides $80   million to the Natural Resources Agency for green infrastructure projects that reduce GHG emissions and provide multiple benefits.
https://lao.ca.gov/Publications/Report/3487/8

The 2023-24 Budget: State Appropriations Limit Estimates

Feb 1, 2023 - Our recent estimates suggest there is an 80 percent chance that revenues will be lower than Governor’s budget projections in 2022-23. Lower revenues in 2022-23 also likely would mean lower revenue projections for 2023-24.
https://lao.ca.gov/Publications/Report/4667

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

The 2025-26 Budget: Undertaking Fiscal Oversight

Feb 24, 2025 - Although the Legislature solved sizeable deficits over the past few years, totaling over $80  billion, those solutions largely only impacted one-time and temporary programs supported by the one-time, post-pandemic revenue surge.
https://lao.ca.gov/Publications/Report/4983

The 2021-22 Budget: CalWORKs Fiscal Outlook

Dec 8, 2020 - To qualify for CalWORKs, families must have one or more children and generally earn no more than about 80  p ercent of the federal poverty level. Once qualified, adults generally are limited to a total of 48 m onths of cash assistance (as we discuss later, effective May 2022, the 48 ‑month limit will be extended to 60 m onths).
https://lao.ca.gov/Publications/Report/4306

The 2022-23 California Spending Plan: Other Provisions

Sep 27, 2022 - If the worker (or a family member) tests positive for COVID-19, the law requires employers to provide up to an additional 40 hours (for a total of 80 hours) of sick leave if needed. Increased Weekly PFL and DI Benefits.
https://lao.ca.gov/Publications/Report/4626

The State Appropriations Limit

Apr 21, 2021 - The state ’s appropriations subject to the limit fell substantially during the dot ‑com bust in the early 2000s and again during the Great Recession due to the significant decline in state revenues during those downturns.
https://lao.ca.gov/Publications/Report/4416

The 2020-21 Budget: Overview of the California Spending Plan (Final Version)

Oct 5, 2020 - As a condition of receiving the funding, counties must show that they are in com pliance with state and federal public health requirements. Budget Provides $600   Million for Project Homekey and Related Services.
https://lao.ca.gov/Publications/Report/4263