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 - In addition, the administration estimated the state would continue to face structural deficits between $15  billion and $25  billion through  2028 ‑29. 2026 ‑27 Budget Problem Now Larger Than Anticipated.
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 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - Budget Package Addressed a Nearly $15   Billion Budget Problem. We estimate the Legislature addressed a nearly $15  billion budget problem in the 2025 ‑26 budget package. This  budget problem is slightly higher than the one addressed by the Governor in the May Revision (around $14  billion), and results from two somewhat offsetting differences.
https://lao.ca.gov/Publications/Report/5079

The 2024-25 Budget: Deficit Update

Feb 20, 2024 - Options to Address $15  Billion in Additional Budget Problem If the budget problem increases by $15  billion, the Legislature will need to find a like amount of new budget solutions to ensure the budget is balanced for 2024 ‑25.
https://lao.ca.gov/Publications/Report/4850

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

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

Jan 13, 2024 - Specifically, the administration defines a $15  billion reduction to school and community college spending —relative to the enacted level in 2023 —as a baseline change. How Does the Governor Propose to Solve the Budget Problem?
https://lao.ca.gov/Publications/Report/4825

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 2025-26 Budget: California's Fiscal Outlook

Nov 20, 2024 - These choices included about $11  billion in spending ‑related solutions and $15  billion in all other solutions, including $5.5  billion in temporary revenue increases and a $7  billion withdrawal from the state ’s rainy ‑day fund .
https://lao.ca.gov/Publications/Report/4939

The 2021-22 Budget: Overview of the Spending Plan (Final Version)

Oct 27, 2021 - Note: Reflects administration estimates of budgetary actions taken as of July 15, 2021, but adjusted for major actions taken later in the legislative session. b A total of $3.3 billion General Fund for Caltrans and CalSTA will revert to the General Fund because subsequent legislation to allocate the funds was not enacted by October 19, as required by the budget act.
https://lao.ca.gov/Publications/Report/4448/1