Frequently asked questions concerning Facebook and California's General Fund

Aug 1, 2012 - In January, the adm inistration updates its revenue estimates when presenting the Governor 's proposed annual budget plan. Facebook estimates are likely to be updated in line with this standard schedule.
https://lao.ca.gov/Recommendations/Details/618

LAO commentary on Facebook IPO and state revenue forecasts

May 15, 2012 - LAO commentary on Facebook IPO and state revenue forecasts LAO commentary on Facebook IPO and state revenue forecasts Program: Revenues Finding or Recommendation: This provides an update to the Legislature on the state's revenue situation, following the revision of revenue estimates by the Governor on May 14, 2012.
https://lao.ca.gov/Recommendations/Details/596

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

Our updated Facebook revenue forecasts now assume a $38 IPO share price, which would rise to $45 in six months, with additional share price growth in later years. We estimate that this would result in $2.1 billion of General Fund revenue collections over the next 13 months, of which about $500 million would be attributed to 2011-12 and about $1.6 billion to 2012-13.
https://lao.ca.gov/laoapp/budgetlist/PublicSearch.aspx?PolicyAreaNum=70&KeyCol=596&Yr=2012

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

Feb 27, 2012 - 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

Background information on LAO's May 2012 economic and revenue forecasts

May 18, 2012 - Figure 6 compares the LAO May 2012 revenue estimate related to the Facebook IPO with those in other recent forecasts. The IPO was announced in February and thus was not included in the Governor ’s January 2012 forecast. ( Additional information on our May 2012 Facebook IPO revenue forecast was published on this website on May 15.)
https://lao.ca.gov/Recommendations/Details/599

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

California revenues on track to be over $2 billion under administration target for April

Apr 25, 2012 - Moreover, the administration has said, its January estimates did not anticipate  the likely revenue effects of an initial public offering of stock by Facebook, nor the Governor 's revised tax measure.
https://lao.ca.gov/Recommendations/Details/588

California's December income tax collections were quite strong

Jan 7, 2014 - Both the budget act projections and our office 's November 2013 revenue projections assumed that net capital gains received by California residents would decline substantially in 2013, given that 2012 results were elevated due to changes in federal tax policy and the Facebook initial public offering, among other factors.
https://lao.ca.gov/Recommendations/Details/775

May income tax collections, to date, are above Governor's projections

May 30, 2013 - May income tax collections, to date, are above Governor's projections May income tax collections, to date, are above Governor's projections Program: Provides update on California's May 2013 personal income tax collections.
https://lao.ca.gov/Recommendations/Details/771