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

Mar 9, 2026 - Focus Here on Major Downturns Because Short-Lived Corrections Usually Have Little Impact on Revenues. Smaller, short-lived corrections occur frequently, among them the 1997 Asian financial crisis, the 2011 U.S. debt celing standoff, the 2015 Chinese growth slowdown, the early pandemic drop in 2020, and the 2025 tariff selloff.
https://lao.ca.gov/LAOEconTax/Article/Detail/852

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

Mar 9, 2026 - Focus Here on Major Downturns Because Short-Lived Corrections Usually Have Little Impact on Revenues. Smaller, short-lived corrections occur frequently, among them the 1997 Asian financial crisis, the 2011 U.S. debt celing standoff, the 2015 Chinese growth slowdown, the early pandemic drop in 2020, and the 2025 tariff selloff.
https://lao.ca.gov/LAOEconTax/article/Detail/852

^[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

Updating the California Necessities Index

Aug 14, 2025 - Recent changes were made to the publication of statistics required to calculate the California Necessities Index, which is used to adjust certain benefit rates and cost-of-living adjustments. In this brief, we provide details on the changes and evaluate alternatives for the index that require only currently available data and conform to the original intent of the index.
https://lao.ca.gov/Publications/Report/5065

Updating the California Necessities Index [Publication Details]

Aug 14, 2025 - Recent changes were made to the publication of statistics required to calculate the California Necessities Index, which is used to adjust certain benefit rates and cost-of-living adjustments. In this brief, we provide details on the changes and evaluate alternatives for the index that require only currently available data and conform to the original intent of the index.
https://lao.ca.gov/Publications/Detail/5065

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

The 2018-19 Budget: 2018-19 COLA for K-14 Education Programs

Apr 30, 2018 - The 2018-19 Budget: 2018-19 COLA for K-14 Education Programs The 2018-19 Budget 2018 ‑19 COLA for K-14 Education Programs The federal government recently released updated information that affects the cost-of-living adjustment (COLA) that the state provides to certain school and community college programs.
https://lao.ca.gov/Publications/Report/3816

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