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

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 2016-17 Budget: California Spending Plan

Oct 5, 2016 - The expected General Fund cost of the repeal of the MFG policy in 2016 –17 is $97  million. These General Fund costs are anticipated to increase in 2017 –18 , but to eventually decline to zero as growth in certain county realignment funds are used to pay these costs.
https://lao.ca.gov/Publications/Report/3487/1

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 Spending Plan

Sep 6, 2024 - . $97  million in ongoing reductions to trial court operations funding. $93  million in one ‑time reductions to Governor ’s Office of Emergency Services grant programs. This includes (1) $45  million from the Prepare California community hardening grant program, (2) $21  million from a gun buyback program, (3) $15  million from the Seismic Retrofitting Program for Soft Story
https://lao.ca.gov/Publications/Report/4922

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 2022-23 Budget: Initial Comments on the Governor's May Revision

May 16, 2022 - (Of this total, 97  percent would be one time or temporary.) In particular, this category includes the Governor ’s $11.5  billion proposal to provide tax refunds to vehicle owners in  California. $3   Billion to Reserves.
https://lao.ca.gov/Publications/Report/4598

Whether or Not to Tap Reserves to Solve Estimated Budget Problem Emerges as Key Fiscal Decision Facing California’s Legislature

Apr 19, 2023 - Other downturns, such as the 2001 so-called dot-com recession, had severe fiscal implications while inflicting somewhat milder economic damage. The 2008 Great Recession had brutal effects on both the state ’s economy and budget.
https://lao.ca.gov/Publications/Report/4762

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

The 2017-18 Budget: California Spending Plan

Oct 18, 2017 - The administration estimates this funding will result in the LCFF ‑target level being 97  percent ‑funded. School districts and charter schools may use LCFF monies for any educational purpose. Augments LCFF Funding for Some County Offices of Education (COEs).
https://lao.ca.gov/Publications/Report/3694/3