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 - In the case of a fiscal budget emergency, the Legislature may only withdraw the lesser of: ( 1)  t he amount needed to maintain General Fund spending at the highest level of the past three enacted budget acts, or ( 2)   5 0  p ercent of the BSA balance.
https://lao.ca.gov/Publications/Report/3769

Cal Facts: 2016

Dec 5, 2016 - California had the 16th lowest fatality rate in the nation —0 .92 fatal injuries for every 100  million miles driven. Roughly 85  percent of Californians drive to work alone or in a carpool, while about 5  percent of Californians use transit and about 4  percent walk or use a bicycle to reach their jobs.
https://lao.ca.gov/Publications/Report/3511/6

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

Rethinking California's Reserve Policy

Apr 10, 2025 - In March of 2004, on the heels of the dot ‑com bust, voters passed Proposition  58, which created the Budget Stabilization Account (BSA). In the 2006 ‑07 budget, the Legislature deposited $472  million into the BSA and in 2007 ‑08 deposited $1.5  billion.
https://lao.ca.gov/Publications/Report/5028

The 2020-21 Budget: Overview of the California Spending Plan (Final Version)

Oct 5, 2020 - As a condition of receiving the funding, counties must show that they are in com pliance with state and federal public health requirements. Budget Provides $600   Million for Project Homekey and Related Services.
https://lao.ca.gov/Publications/Report/4263

The State Appropriations Limit

Apr 21, 2021 - For example, school enrollment growth has averaged ‑0. 1  p ercent over the last decade, compared to 2. 26  p ercent in the 1990s. Overall state population growth has averaged 0. 7  p ercent over the last decade, compared to 1. 3  p ercent in the 1990s.
https://lao.ca.gov/Publications/Report/4416

The 2017-18 Budget: California Spending Plan

Oct 18, 2017 - The 2017-18 Budget: California Spending Plan 0, 3.5, or 7% 0, 3.5, or 7% a A small portion of VLF growth will still be provided to the Child Poverty and Family Supplemental Support Subaccount in 1991 realignment. b Starting in 2018 ‑19, the adjustment factor will depend on the rate of growth in realignment revenues.
https://lao.ca.gov/Publications/Report/3694/8

The 2020-21 Budget: Initial Comments on the Governor’s May Revision

May 17, 2020 - Although subject to some uncertainty these payments could have yielded savings of more than $ 5  b illion over the next few decades for school districts and more than $0. 5  b illion for community colleges.
https://lao.ca.gov/Publications/Report/4232

The 2021-22 Budget: CalWORKs Fiscal Outlook

Dec 8, 2020 - Our office forecasts CalWORKs caseload using three primary factors: ( 1)  c urrent economic conditions, ( 2)  e conomic conditions over the last two years, and ( 3)  t he number of Californians ages 0 ‑18.
https://lao.ca.gov/Publications/Report/4306