California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - California’s Strong Revenue Trends Mask Looming Budget Risk Search In Fiscal Perspectives , the Legislative Analyst periodically offers the Legislature his views on fiscal matters facing California. California’s Strong Revenue Trends Mask Looming Budget Risk January 23, 2026 Tweet Gabriel PetekLegislative Analyst History suggests that fiscal risks can build during times when they are easiest to ignore.
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

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 2026-27 Budget: Overview of the Governor's Budget

Jan 12, 2026 - In this report, we offer an alternative approach for the Legislature to take that would put the state on better fiscal footing. Ultimately, this approach includes: adopting LAO revenue estimates, tackling the resulting budget problem, and shrinking multiyear deficits.
https://lao.ca.gov/Publications/Report/5101

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

California's Legislative Analyst's Office and the Value of Independence

Nov 15, 2024 - California's Legislative Analyst's Office and the Value of Independence Search In Fiscal Perspectives , the Legislative Analyst periodically offers the Legislature his views on fiscal matters facing California.
https://lao.ca.gov/Publications/Report/4938

LAO Alternative Budget Overview [Publication Details]

Feb 20, 2008 - LAO Alternative Budget Overview [Publication Details] HTML Description: In contrast to the administration’s across-the-board reduction budget-balancing approach that fails to prioritize state spending, we offer an alternative approach for the Legislature’s consideration.
https://lao.ca.gov/Publications/Detail/1768

The 2012-13 Budget: Overview of the May Revision [Publication Details]

May 18, 2012 - In some cases, we offer alternative ways to achieve the savings targeted by the Governor. With regard to Proposition 98, we offer alternatives to both the Governor's basic budget plan and his trigger plan.
https://lao.ca.gov/Publications/Detail/2635

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

An Extraordinary Moment in California's Fiscal History

Apr 11, 2019 - On the other hand, several highly anticipated initial public offerings could result in higher than previously anticipated personal income in the state which could give rise to an even larger surplus.
https://lao.ca.gov/Publications/Report/4003