Building Reserves to Prepare for a Recession

Mar 7, 2018 - Under Proposition  2, the state must put money into the BSA until its total reaches a maximum amount of 10  p ercent of General Fund tax revenue. Currently, this is about $13. 5  b illion. Once the BSA reaches this maximum, funds that would bring the BSA above 10  p ercent of General Fund taxes must be spent on infrastructure.
https://lao.ca.gov/Publications/Report/3769

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

Evolution of the Balance of the Budget Stabilization Account

Nov 14, 2018 - Under Proposition  58, deposits into the BSA were no longer required if the fund reached $8  billion or 5  percent of General Fund revenues, whichever was larger. Proposition  58 explicitly permitted the Legislature to transfer amounts into the BSA so that its balance exceeded either of these thresholds.
https://lao.ca.gov/Publications/Report/3900

The 2024-25 Budget: Overview of the Governor's Budget

Jan 13, 2024 - If these actions were all counted as policy choices, rather than baseline changes, the resulting budget problem would be $58 billion. We Estimate the Net Difference Between LAO and Administration Budget Problems Is About $10   Billion.
https://lao.ca.gov/Publications/Report/4825

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - This is about $5  billion larger than the budget problem anticipated by the administration in June. Figure  3 provides our estimates of the General Fund condition, including our estimate of the budget problem.
https://lao.ca.gov/Publications/Report/5091

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 2023-24 Budget: Overview of the Spending Plan (Final Version)

Oct 16, 2023 - Appendix 4, Figure 7 Remaining Large One ‑Time and Temporary Augmentations From the 2021 ‑22 and 2022 ‑23 Budget Packages: Resources and Environment General Fund (In Millions) Emergency surge (helitanker contract component) $45 Clean Energy Reliability Investment Plan (SB 846) 100 Diablo Canyon land use planning — Coastal resilience SB 1 implementation 55 Clean Cars 4 All and other equity (ZEV
https://lao.ca.gov/Publications/Report/4788/4

The 2024-25 Budget: Deficit Update

Feb 20, 2024 - The 2024-25 Budget: Deficit Update Deficit Update Under LAO Revenue Update, Budget Problem Grows by $15  Billion The state already faces a significant deficit this year — we estimate it totaled $58 billion under the administration’s revenue forecast at the time the Governor’s budget was proposed in January.
https://lao.ca.gov/Publications/Report/4850

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

Managing California’s Cash

Sep 3, 2019 - The early 1990s were marked by a series of sales of RANs and RAWs —at the time, the largest such sales in the state ’s history (see Figure  5). Second Cash Crunch in Early 2000s. After a period of relative calm in the mid ‑ and late ‑1990s, California faced another series of years with acute budget problems following the dot ‑com bust and ensuing recession.
https://lao.ca.gov/Publications/Report/4092