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

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 2017-18 Budget: The Board of Equalization

Mar 7, 2017 - LAO Recommendations Approve $7.5 Million for Enforcement in 2017-18 … As noted above, Proposition 56 requires that a certain sum of money “annually shall be used for the purpose of funding law enforcement efforts ” and that $7.5  million “shall be apportioned ” to BOE in 2017-18 ($6  million per year thereafter).
https://lao.ca.gov/Publications/Report/3609

The 2017-18 Budget: An Overview of the Governor's Proposition 56 Proposals

Feb 22, 2017 - Specifically, the measure requires BOE to receive $6  million annually ($7.5  million for five quarters of revenue) for enforcement activities. The administration ’s proposal only provides $5.8  million in 2017 ‑18.
https://lao.ca.gov/Publications/Report/3573

Fixing Unemployment Insurance

Dec 2, 2024 - During the phase ‑in period, the state also entered the dot ‑com recession. These two cost pressures absorbed the remaining flexibility in the state ’s UI tax system. As  shown in Figure  4 , the state began this period in Schedule C but quickly moved to Schedule F+, the highest tax schedule, where it has remained since.
https://lao.ca.gov/Publications/Report/4943

The 2018-19 May Revision: LAO Revenue Outlook

May 12, 2018 - Accordingly, we estimate that taxable wages and salaries will increase by 7.5 percent in 2018 and 6.6 percent in 2019 before fading to 3.5 percent growth in 2021. As wages and salaries make up about two-thirds of income (as seen in the tax guide on page 6 ), this growth is a key driver of our outlook for the PIT.
https://lao.ca.gov/Publications/Report/3830

The 2017-18 Budget: Governor's Gann Limit Proposal

Mar 2, 2017 - As revenues surged during the dot ‑com boom of the late 1990s, however, the state approached the limit. The state had excess revenues in 1999 ‑00, but because appropriations were under the limit in 2000 ‑01, additional Proposition  98 spending and taxpayer rebates were not required.
https://lao.ca.gov/Publications/Report/3596

The 2023-24 Budget: Considering Inflation's Effects on State Programs

Nov 16, 2022 - The California CPI was 7.5 percent as of the third quarter of 2022, compared to less than 3 percent over the previous five years. Other measures of inflation also are relevant to specific areas of state spending.
https://lao.ca.gov/Publications/Report/4647

The 2021-22 Budget: Business Tax Incentives

Jan 28, 2021 - . $7.5   Million Backfill to 2011 Realignment. Article XIII, Section 36(d) of California ’s Constitution requires the state to reimburse, or “backfill, ” the 2011 Realignment fund for revenue losses resulting from actions such as the one proposed.
https://lao.ca.gov/Publications/Report/4327