The State Appropriations Limit

Apr 21, 2021 - The state ’s appropriations subject to the limit fell substantially during the dot ‑com bust in the early 2000s and again during the Great Recession due to the significant decline in state revenues during those downturns.
https://lao.ca.gov/Publications/Report/4416

Building Reserves to Prepare for a Recession

Mar 7, 2018 - To put this in more concrete but very rough terms, a moderate recession, like the dot ‑com bust, could lead to a $ 40  b illion budget problem. A more mild recession might result in a $ 20  b illion budget problem.
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

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 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 2018-19 May Revision: LAO Economic Outlook

May 12, 2018 - “consensus scenario. ” The LAO develops the California portions of the forecast based on this scenario. b Employer survey data. Figure  2, at the end of this post, lists the major economic variables under our new moderate growth scenario through 2022.
https://lao.ca.gov/Publications/Report/3829

The 2019-20 Budget: California's Fiscal Outlook

Nov 14, 2018 - As a result of the dot ‑com bust and ensuing recession in 2001, state revenues declined precipitously. The very next year, looking to budget year 2002 ‑03, our Fiscal Outlook found the state ’s surplus had disappeared, and instead, the budget faced a deficit of $12. 4  b illion for the upcoming year.
https://lao.ca.gov/Publications/Report/3896

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 2021-22 Budget: Overview of the Spending Plan (Final Version)

Oct 27, 2021 - Under the June 2021 b udget plan, the total required deposit is $4. 5 b illion —$1. 9 b illion in 2020 ‑21 and $2. 6 b illion in 2021 ‑22. The largest discretionary allocation of Proposition 98 funding is $12. 5 b illion to pay down the deferrals the state adopted as part of the June 2020 b udget plan.
https://lao.ca.gov/Publications/Report/4448

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

May 17, 2020 - Under the administration ’s estimates and proposals, the state would end 2020 ‑21 with $10. 7  b illion in reserves. This includes a balance of nearly $ 2  b illion in the SFEU. The administration has a multiyear plan to use the remaining BSA and Safety Net reserves over three years —using about $ 6  b illion in 2021 ‑22 and $ 3  b illion in 2022 ‑23.
https://lao.ca.gov/Publications/Report/4232