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

Federal Spending in California

Jan 18, 2017 - Of this amount, over $850 million went to transit districts, which typically provide public bus and rail systems.
https://lao.ca.gov/Publications/Report/3531/5

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 2023-24 Budget: Overview of the Governor's Budget

Jan 13, 2023 - Major cost shift proposals in the Governor ’s budget include: (1)  shifting $1.5  billion in costs for zero ‑emission vehicles from the General Fund to the Greenhouse Gas Reduction Fund, (2)  making $850  million in loans from special funds to the General Fund, (3)  temporarily transferring $300  million from the health care affordability reserve fund to the General Fund, and (4)
https://lao.ca.gov/Publications/Report/4662

The 2019-20 Budget: California Spending Plan (Final Version)

Oct 17, 2019 - The 2019-20 Budget: California Spending Plan (Final Version) $8,970 $2,158 Note: This table excludes $850 million in pension ‑related budget relief for school districts, which we describe in the section on programmatic spending.
https://lao.ca.gov/Publications/Report/4083

The 2022-23 Budget: Overview of the Spending Plan

Oct 12, 2022 - Second, the spending plan provides roughly $850  million in 2022 ‑23, of which about $500  million is   ongoing —almost  entirely from the General   Fund —for  various augmentations aimed at enhancing the state ’s wildfire response.
https://lao.ca.gov/Publications/Report/4616

The 2016-17 Budget: California Spending Plan

Oct 5, 2016 - Rather, the roughly $850  million in General Fund savings that will result from the fee extension will likely occur in 2017 –18 , reflecting the timing of the required federal government approval and Medi –Cal ’s cash –basis budgeting.
https://lao.ca.gov/Publications/Report/3487/6