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

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

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

Oct 16, 2023 - The 2023-24 Budget: Overview of the Spending Plan (Final Version) Overview of the Spending Plan (Final Version) Appendix 4: Large One-Time and Temporary Augmentations Transportation Appendix 4, Figure 1 Remaining Large One ‑Time and Temporary Augmentations From the 2021 ‑22 and 2022 ‑23 Budget Packages: Business and Labor General Fund (In millions) Begin new information technology overhaul
https://lao.ca.gov/Publications/Report/4788/4

Building Reserves to Prepare for a Recession

Mar 7, 2018 - By most measures, the recession of the early 1990s was more severe than the dot ‑com bust in the early 2000s. For example, unemployment in California reached 9. 7  p ercent in mid ‑ to late ‑1992, but peaked at 6. 9  p ercent after the dot ‑com bust.
https://lao.ca.gov/Publications/Report/3769

The 2018-19 Budget: California Spending Plan (Final Version)

Oct 2, 2018 - State Lands Commission (SLC) The budget provides $ 99   m illion for SLC, which is more than double the current ‑year level of $ 45  m illion. The significant funding increase is to plug offshore oil and gas wells, as described below.
https://lao.ca.gov/Publications/Report/3870/9

The 2022-23 Budget: Overview of the Spending Plan

Oct 12, 2022 - Largely consistent with 2021 ‑22 Budget Act provisions, the 2022 ‑23 spending plan provides $81  million to CSU and $99  million to UC for resident undergraduate enrollment growth. At CSU, enrollment is expected to grow by 9,434 full ‑time equivalent (FTE) students from 2021 ‑21 to 2022 ‑23 (leaving CSU still approximately 3,000 FTE students below its peak enrollment level in 2020 ‑21).
https://lao.ca.gov/Publications/Report/4616

The 2016-17 Budget: California Spending Plan

Oct 5, 2016 - This position total includes 99 existing project positions that will shift from DD &I to M &O responsibilities plus 23 new positions. When the department assumes complete responsibility for M &O of the FI$Cal system in 2019 –20 , the department is expected to cost $70.4  million ($40  million General Fund) annually and include 274 positions. 21 st Century (TFC) Project In 2004,
https://lao.ca.gov/Publications/Report/3487/11

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 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

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