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 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

The 2026-27 Budget: California Competes Extension

Mar 18, 2026 - Changes made to the program in 2018 likely explain much of this trend. Specifically, the 2018 budget package: Removed a requirement that 25  percent of credits be reserved for businesses with less than $2  million in annual revenue.
https://lao.ca.gov/Publications/Report/5162

Managing California’s Cash

Sep 3, 2019 - 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. Although the dot ‑com bust was relatively mild in economic terms, it hit the California budget —which is particularly reliant on the Bay Area ’s technology sector —especially hard.
https://lao.ca.gov/Publications/Report/4092

The 2018-19 Budget: California Hiring Tax Credits

Mar 15, 2018 - For example, a business that pays a new qualified employee $20. 00 p er hour in 2018 c ould receive a tax credit based on 35  p ercent of $3. 50 p er hour ($20. 00 m inus $16.50), or $1. 23 p er hour.
https://lao.ca.gov/Publications/Report/3784

Fixing Unemployment Insurance

Dec 2, 2024 - From 2011 through 2018, California businesses paid the federal surcharge to repay the loan principal while the General Fund made a total of $1.4  billion in interest payments. After Great Recession, Tax Rates Declined, Worsening an Already Poor Position.
https://lao.ca.gov/Publications/Report/4943

The 2025-26 Budget: CDTFA’s Tobacco Programs

Feb 14, 2025 - In 2018-19, the tax program had 75.6 filled positions, and the licensing program had 64.3 filled positions. In 2023-24, these programs had 53.2 and 41.9 filled positions, respectively. CDTFA has provided two explanations for this decline.
https://lao.ca.gov/Publications/Report/4966

Assessing Recent Changes to California Competes

Mar 30, 2020 - LAO Assessment of The Program in 2018‑19 Modified Program Appears to Be Better Targeted. The changes made to the program in 2018 appear to have more narrowly targeted the program to tradable businesses.
https://lao.ca.gov/Publications/Report/4213

The 2017-18 Budget: Governor's Gann Limit Proposal

Mar 2, 2017 - As revenues surged during the dot ‑com boom of the late 1990s, however, the state approached the limit. The state had excess revenues in 1999 ‑00, but because appropriations were under the limit in 2000 ‑01, additional Proposition  98 spending and taxpayer rebates were not required.
https://lao.ca.gov/Publications/Report/3596

The 2018-19 Budget: Governor's Gann Limit Estimates

Apr 6, 2018 - Incorporating the final 2016 ‑17 data —as well as our estimates for 2017 ‑18 and 2018 ‑19 —reduces state room by $2.5  billion in 2016 ‑17, $1.7  billion in 2017 ‑18, and $610  million in 2018 ‑19 (relative to the administration ’s January 2018 estimates).
https://lao.ca.gov/Publications/Report/3800