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

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 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 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

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 2019-20 Budget: California Spending Plan—Debt Liabilities

Oct 17, 2019 - (The payment made in 2018 ‑19 is part of the 2019 ‑20 budget package, but was attributed to 2018 ‑19 for budgetary purposes.) Chapter  33 specifies that these supplemental payments be apportioned based on a pension plan ’s share of the state ’s General Fund contribution to CalPERS.
https://lao.ca.gov/Publications/Report/4106

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 2018-19 Budget: Overview of the Governor's Budget

Jan 12, 2018 - In 2018 ‑19, the budget allocates $4. 6  b illion in transportation spending, consistent with the measure ’s statutory formula for allocating revenues. If approved by voters in 2018, S B  5 and S B  3 would each authorize $ 4  b illion in general obligation bonds for natural resources ‑related projects and housing, respectively.
https://lao.ca.gov/Publications/Report/3731

The 2018-19 Budget: California's Fiscal Outlook

Nov 15, 2017 - Relative to the 2017 ‑18 Budget Act , this scenario would increase General Fund costs by $280  million in 2017 ‑18 and $576  million in 2018 ‑19. Trade. The President has sought to renegotiate the nation ’s trade pact with Mexico and Canada, California ’s key international trading partners.
https://lao.ca.gov/Publications/Report/3718

The 2018-19 Budget: California's Fiscal Outlook

Nov 15, 2017 - The 2018-19 Budget: California's Fiscal Outlook Translate Our Website This Google ™ translation feature provided on the Legislative Analyst's Office (LAO) website is for informational purposes only. The LAO is unable to guarantee the accuracy of this translation and is therefore not liable for any inaccurate information resulting from the translation application tool.
https://lao.ca.gov/Publications/Report/3718/1