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

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

Evolution of the Balance of the Budget Stabilization Account

Nov 14, 2018 - Proposition  58 required BSA deposits to increase from 1  percent of General Fund revenues in 2006 ‑07 to 3  percent in 2008 ‑09 and every year thereafter. Proposition  58 Required Deposits Until BSA Reached Certain Size.
https://lao.ca.gov/Publications/Report/3900

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 2024-25 Budget: Overview of the Governor's Budget

Jan 13, 2024 - We take this approach in order to provide the Legislature visibility into the full scope of the administration ’s choices. What Is Our Estimate of the Budget Problem Under the Governor ’s Budget?  We estimate the administration solved a budget problem of $58  billion.
https://lao.ca.gov/Publications/Report/4825

The 2024-25 Budget: Deficit Update

Feb 20, 2024 - Figure 1 Summary of Possible Remaining One ‑Time and Temporary Spending (In Millions)
https://lao.ca.gov/Publications/Report/4850

The 2018-19 May Revision: LAO Economic Outlook

May 12, 2018 - Figure 1 Comparing Recent California Economic Scenarios Percent Change Unless Indicated Target federal funds rate (percent) 1.6 S &P 500 (annual average) 2,612 73 61 a An economic growth scenario based on Moody ’s Analytics ’ April 2018 U.S.
https://lao.ca.gov/Publications/Report/3829

The 2018-19 Budget: California Spending Plan (Final Version)

Oct 2, 2018 - In total, the spending plan assumes S B   1 p rovides $4. 6  b illion in 2018 ‑ 19 —a $1. 8  b illion ( 62  p ercent) increase from the revised level of spending in 2017 ‑18. (The main reason for the year ‑to ‑year increase is that the increased taxes and charges authorized by S B  1 were in effect for only part of 2017 ‑18.)
https://lao.ca.gov/Publications/Report/3870/10

Rethinking California's Reserve Policy

Apr 10, 2025 - In March of 2004, on the heels of the dot ‑com bust, voters passed Proposition  58, which created the Budget Stabilization Account (BSA). In the 2006 ‑07 budget, the Legislature deposited $472  million into the BSA and in 2007 ‑08 deposited $1.5  billion.
https://lao.ca.gov/Publications/Report/5028

The 2023-24 Budget: Overview of the Spending Plan (Final Version)

Oct 16, 2023 - The 2023-24 Budget: Overview of the Spending Plan (Final Version) Overview of the Spending Plan (Final Version) Appendix 4: Large One-Time and Temporary Augmentations Transportation Appendix 4, Figure 1 Remaining Large One ‑Time and Temporary Augmentations From the 2021 ‑22 and 2022 ‑23 Budget Packages: Business and Labor General Fund (In millions) Begin new information
https://lao.ca.gov/Publications/Report/4788/4