How Have Past Stock Market Downturns Affected Income Tax Revenue? [EconTax Blog]

Mar 9, 2026 - The Nasdaq composite, which includes the California headquartered companies Nvidia, Google, Facebook, Apple, AMD, and Broadcom, has doubled since 2023. The meteoric rise in the value of these companies has led to sizable gains for their investors and their employees via stock options, which has led income tax collections to grow at double-digit rates.  
https://lao.ca.gov/LAOEconTax/Article/Detail/852

How Have Past Stock Market Downturns Affected Income Tax Revenue? [EconTax Blog]

Mar 9, 2026 - The Nasdaq composite, which includes the California headquartered companies Nvidia, Google, Facebook, Apple, AMD, and Broadcom, has doubled since 2023. The meteoric rise in the value of these companies has led to sizable gains for their investors and their employees via stock options, which has led income tax collections to grow at double-digit rates.  
https://lao.ca.gov/LAOEconTax/article/Detail/852

Frequently asked questions concerning Facebook and California's General Fund

Aug 1, 2012 - Frequently asked questions concerning Facebook and California's General Fund Frequently asked questions concerning Facebook and California's General Fund Program: Revenues Finding or Recommendation: This item lists answers to frequently asked questions concerning Facebook's stock and California's General Fund budget for 2012-13.
https://lao.ca.gov/Recommendations/Details/618

LAO commentary on Facebook IPO and state revenue forecasts

May 15, 2012 - State tax revenue estimates regarding Facebook, therefore, require numerous assumptions. Because of these factors, there is a large margin of error surrounding both our Facebook revenue estimates and those of the administration.
https://lao.ca.gov/Recommendations/Details/596

Summary of LAO Findings and Recommendations on the 2012-13 Budget

Essentially, to avoid “double counting ” the Facebook income, this means that both of our revenue estimates consider the economy without Facebook and then add PIT revenues on top of those estimates to account for the IPO.
https://lao.ca.gov/laoapp/budgetlist/PublicSearch.aspx?PolicyAreaNum=70&KeyCol=596&Yr=2012

^[PDF] The 1989-90 Budget: Perspectives and Issues

:~Jl~,ct~diJQ'Y~r~11;l,lJ.9;~P.J'siE~tg(;lcJ¢Y~1~"i.()f..capital ,g~,t!!,~!p.S2m¥"r,~~~z,~gJ~K~t:lt~J~~p~y~r~.Foods which had been a.ppi-o- ,pHated; to 'the SFEU were' redireCted to cover the shortfall, and' several actions were taken by the administration to reduce or delay expenditures.
https://lao.ca.gov/analysis/1989/pandi_89_part1.pdf

LAO 2008 Budget Analysis: General Government

We withhold recommendation on the administration ’s proposal for added DPA staff to handle layoff –related workload. The DPA ’s staffing requirements in this area will depend on the extent to which the Legislature opts to reduce positions in departments to help balance the budget.
https://lao.ca.gov/analysis_2008/general_govt/gen_anl08016.aspx

^[PDF] Department of Personnel Administration

The DPA, however, may use available resources and personnel budgeted in this act temporarily for the purposes of providing such assistance to departments. Should the Director of Finance, upon recommendation of the Director of DPA, determine that additional resources are necessary to implement required position reductions and, if necessary, layoffs in state
https://lao.ca.gov/handouts/Conf_Comm/2008/DPA_06_12_08.pdf

2001 Budget Analysis: Department of Personnel Administration (8380)

However, DPA will begin collective bargaining negotiations to replace the expiring MOUs th is spring. Consequently, we anticipate the state will face some increased costs for employee compensation in 2001-02.
https://lao.ca.gov/analysis_2001/general_govt/gen_29_8380_Dept_Personnel_Admin_anl01.htm

LAO 2007 Budget Analysis: Legislative Oversight of State Employee Compensation

The Dills Act provides that, in this scenario, either DPA or the union “may reopen negotiations on all or part” of the MOU. The DPA and the union, however, may agree to implement provisions of the MOU that do not require the expenditure of funds.
https://lao.ca.gov/analysis_2007/2007_pandi/pi_08_anl07.aspx