The 2025-26 Budget: Undertaking Fiscal Oversight

Feb 24, 2025 - What Information Helps to Assess Costs and Benefits? This section describes the type of information the Legislature can gather to try to assess the costs and benefits of state programs. Once program costs and metrics are understood, the Legislature can weigh the benefits relative to the costs.
https://lao.ca.gov/Publications/Report/4983

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

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 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - Borrowing costs, a key factor in business expansions and major consumer purchases, remain high. New tariffs on imports into the U.S. are creating cost pressures for businesses and consumers. Despite this, income tax collections have been strong in recent months, growing at double‑digit rates.
https://lao.ca.gov/Publications/Report/5091

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

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 2019-20 Budget: California Spending Plan—Debt Liabilities

Oct 17, 2019 - (There were no special fund costs associated with undoing this deferral.) Special Fund Loans Throughout the 2000s, particularly in response to the dot-com bust and Great Recession, the state loaned amounts to the General Fund from other state accounts, particularly special funds to address General Fund budget problems.
https://lao.ca.gov/Publications/Report/4106

The 2023-24 Budget: Multiyear Assessment

Feb 15, 2023 - Three of those —the recession in the early 1990s, the dot ‑com bust in the early 2000s, and the Great Recession —resulted in large revenue shortfalls and ensuing multiyear deficits, even for some years after each recession ended.
https://lao.ca.gov/Publications/Report/4687

The 2016-17 Budget: California Spending Plan

Oct 5, 2016 - It also provides $505,000 (ongoing) for the State Library to purchase additional microfilm ($343,000), database subscriptions ($142,000), and periodical and journal subscriptions ($20,000). The budget includes $56,000 (ongoing) to pay for a 5  percent increase in rent and facilities costs at the State Library ’s main library in Sacramento.
https://lao.ca.gov/Publications/Report/3487/5

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