LAO commentary on Facebook IPO and state revenue forecasts

May 15, 2012 - Our updated Facebook revenue forecasts now assume a $38 IPO share price, which would rise to $45 in six months, with additional share price growth in later years. We estimate that this would result in $2.1 billion of General Fund revenue collections over the next 13 months, of which about $500 million would be attributed to 2011-12 and about $1.6 billion to 2012-13.
https://lao.ca.gov/Recommendations/Details/596

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

Our updated Facebook revenue forecasts now assume a $38 IPO share price, which would rise to $45 in six months, with additional share price growth in later years. We estimate that this would result in $2.1 billion of General Fund revenue collections over the next 13 months, of which about $500 million would be attributed to 2011-12 and about $1.6 billion to 2012-13.
https://lao.ca.gov/laoapp/budgetlist/PublicSearch.aspx?PolicyAreaNum=70&KeyCol=596&Yr=2012

Income taxes reportedly over $2 billion below administration's estimate for April

May 1, 2012 - Moreover, the administration has said, its January estimates did not anticipate the likely revenue effects of an initial public of fering of stock by Facebook, nor the Governor 's revised tax measure.
https://lao.ca.gov/Recommendations/Details/592

^[PDF] California's Parimutuel Horse Racing Tax

3.042 of total w:~geri ng plus 1.75% of exotic w:~gering. 2.51, of tre first $550,ml tota 1 w:~g£>ri ng plus 5.5% of the next $200,ro:J total waqering pl us 4. n of any addit.icml ~~gering ; 1.75% of exotic w:~gering. fb.
https://lao.ca.gov/reports/1984/californias_paramutual_horse_racing_tax.pdf

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

May income tax collections, to date, are above Governor's projections

May 30, 2013 - Withholding for May 2013  has totaled  about $3.48 billion, which is  $67 million (2 percent) above May 2012 levels, despite the fact that May 2012 is believed to have included a few hundred million dollars of nonrecurring PIT withholding resulting from Facebook, Inc. ’s initial public offering.
https://lao.ca.gov/Recommendations/Details/771

Background information on LAO's May 2012 economic and revenue forecasts

May 18, 2012 - Figure 6 compares the LAO May 2012 revenue estimate related to the Facebook IPO with those in other recent forecasts. The IPO was announced in February and thus was not included in the Governor ’s January 2012 forecast. ( Additional information on our May 2012 Facebook IPO revenue forecast was published on this website on May 15.)
https://lao.ca.gov/Recommendations/Details/599

The 2026-27 Budget: Contract to Achieve Operational Efficiencies [Publication Details]

Mar 10, 2026 - The budget assumed that the process changes resulting from the contract would reduce state costs by $500 million in 2025-26, growing to $2 billion in annual savings by 2028-29. This post provides background on the state’s recent efforts to identify efficiencies to achieve budget savings and our office’s comments and recommendations concerning the progress of the administration’s efforts to reduce state costs through this contract.
https://lao.ca.gov/Publications/Detail/5156