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 - First, between 1990 and 2000, the General Fund became increasingly reliant on PIT revenues, relative to SUT revenues, which are much less responsive to economic conditions. As a result, revenue volatility increased between these two events.
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

Cal Facts: 2016

Dec 5, 2016 - Requires state to reimburse local governments for some state mandates. 98 (1988) Establishes minimum funding requirement for schools and community colleges. 172 (1993) Imposes half-cent sales tax for local public safety programs. 218 (1996) Limits local government authority to impose certain taxes, fees, and assessments. 39 (2000) Lowers voter approval requirements to 55  percent
https://lao.ca.gov/Publications/Report/3511/1

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's Fiscal Outlook

Nov 14, 2018 - In fact, this is precisely what occurred after we published our Fiscal Outlook at the end of 2000. As a result of the dot ‑com bust and ensuing recession in 2001, state revenues declined precipitously.
https://lao.ca.gov/Publications/Report/3896

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 budget provides $21  million from Proposition  13 (2000) for DWR to spend over five years for projects to improve fish populations in the San Joaquin River watershed. Such projects could include restoring river beds, banks, or floodways or removing barriers within the river or its tributaries, with the goal of facilitating fish migration and improving spawning habitats.
https://lao.ca.gov/Publications/Report/3694/9

The Quiet Transformation in California’s Cash Management

Aug 29, 2019 - (There was one exception, in 2000, during which the state did not borrow externally.) Although external borrowing is relatively common for governments and corporations alike —placing it nearer the routine end of the spectrum —it amounts to a confirmation that internal liquidity is periodically insufficient.
https://lao.ca.gov/Publications/Report/4091

The 2019-20 May Revision: Opportunity Zones

May 11, 2019 - New Market Tax Credits, established in 2000, provide tax credits to taxpayers who invest in businesses or real estate in certain economically distressed areas. Investments under this program have been made for a wide variety of purposes, including renewable energy and affordable housing.
https://lao.ca.gov/Publications/Report/4038