How Have Past Stock Market Downturns Affected Income Tax Revenue? [EconTax Blog]

Mar 9, 2026 - By most measures, the global financial crisis was more severe than the dot-com crash. The state 's unemployment rate, for example, peaked at 7 percent following the dot-com crash but reached nearly double that during the financial crisis and remained elevated for much longer.
https://lao.ca.gov/LAOEconTax/Article/Detail/852

How Have Past Stock Market Downturns Affected Income Tax Revenue? [EconTax Blog]

Mar 9, 2026 - By most measures, the global financial crisis was more severe than the dot-com crash. The state 's unemployment rate, for example, peaked at 7 percent following the dot-com crash but reached nearly double that during the financial crisis and remained elevated for much longer.
https://lao.ca.gov/LAOEconTax/article/Detail/852

The 2026-27 Budget: University of California

Feb 26, 2026 - UC reserves also were impacted by the infusion of federal stimulus funding and one ‑time state funding provided in 2021 ‑22 and 2022 ‑23, with levels growing somewhat over those years. In 2023 ‑24 (the most recent year for which UC has reported data), UC reserves declined from 17  percent to 15  percent of annual core fund expenditures —equating to just under two months of reserves.
https://lao.ca.gov/Publications/Report/5143

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

Oversight of certain public benefit artificial intelligence (AI) companies. [Ballot]

Jan 20, 2026 - The measure would have the following major fiscal effects: Increased state costs that would likely be in the tens of millions of dollars annually to establish and operate a new regulatory commission overseeing certain public benefit AI com panies.
https://lao.ca.gov/BallotAnalysis/Initiative/2025-033

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

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

Frequently Asked Questions About Wildfires in California

Jan 28, 2025 - As such, the notable infusion of one-time funding the state provided over the last several years likely will support projects that take place over several years to come. In addition to spending its own money, the state requires electric utilities to dedicate funding from their ratepayers to undertake activities intended to reduce the risks of utility-sparked wildfires.
https://lao.ca.gov/Publications/Report/4952

Fixing Unemployment Insurance

Dec 2, 2024 - During the phase ‑in period, the state also entered the dot ‑com recession. These two cost pressures absorbed the remaining flexibility in the state ’s UI tax system. As  shown in Figure  4 , the state began this period in Schedule C but quickly moved to Schedule F+, the highest tax schedule, where it has remained since.
https://lao.ca.gov/Publications/Report/4943

The 2024-25 Budget: Crafting Climate, Resources, and Environmental Budget Solutions

Feb 14, 2024 - For example, it could identify program areas where state entities are receiving significant infusions of federal funds (such as drinking water and ZEVs) and evaluate whether it could make additional reductions to proposed state funds and still make notable progress toward achieving its priorities.
https://lao.ca.gov/Publications/Report/4841