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

Cal Facts: 2016

Dec 5, 2016 - While the county jail and community supervision populations have declined somewhat, the share of total offenders under county jurisdiction has increased from 59 percent to 69 percent over the same time period.
https://lao.ca.gov/Publications/Report/3511/4

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 2023-24 California Spending Plan: Other Provisions

Nov 8, 2023 - Chapter  59 of 2023 (SB  147, Ashby) provides authority through December 31, 2033 for the California Department of Fish and Wildlife (CDFW) to allow —for certain types of projects —the incidental take of a species that is designated under law as fully protected.
https://lao.ca.gov/Publications/Report/4814

The 2016-17 Budget: California Spending Plan

Oct 5, 2016 - As part of the settlement, the vendor will pay SCO $59  million and the vendor will forego its own claims against SCO for $23  million. The settlement also prevents the parties from pursuing any additional litigation on this matter.
https://lao.ca.gov/Publications/Report/3487/11

The 2016-17 Budget: California Spending Plan

Oct 5, 2016 - Figure 19 California State University Core Education Budget (In Millions) CSU ’s Plan for Unrestricted Funds Employee compensation increase (5.2 percent) $171 Resident enrollment growth (1.4 percent) 59 Maintenance of newly constructed facilities 1 Graduation improvement plan (one time) 35 Equal employment opportunity best practices (one time) 2 Remove one –time , prior –year funds –25 Total $400 a Includes all state General Fund.
https://lao.ca.gov/Publications/Report/3487/5

The State Appropriations Limit

Apr 21, 2021 - The state ’s appropriations subject to the limit fell substantially during the dot ‑com bust in the early 2000s and again during the Great Recession due to the significant decline in state revenues during those downturns.
https://lao.ca.gov/Publications/Report/4416

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

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