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

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

Residency rules for state personal income tax purposes. [Ballot]

Jan 27, 2026 - California residents pay state income taxes on all their income, including wages, investment income, and capital gains, even if the income was earned outside the state. Nonresidents Pay Tax on California-Earned Income.
https://lao.ca.gov/BallotAnalysis/Initiative/2025-039

The 2026-27 Budget: Cap-and-Invest Expenditure Plan

Feb 10, 2026 - Specifically: Considering Interest Income and Entering Fund Balance Discretionary and Outside of S B   840 . The practical implication of the administration considering revenues from interest income and the entering fund balance outside of the S B  840 allocation process is that more than $1  billion annually will be set aside as available for discretionary purposes prior to computing allotments for Tier 3 programs.
https://lao.ca.gov/Publications/Report/5114

The 2026-27 Budget: Re-Envisioning State Education Governance

Mar 18, 2026 - The significance of these examples is not simply that two different entities disagreed about policy, but that the governance structure did not provide a clear path for resolving these disagreements outside of extended litigation.
https://lao.ca.gov/Publications/Report/5165

The 2026-27 Budget: In-Home Supportive Services

Mar 18, 2026 - Part of the impetus to switch to a county MOE structure was to provide counties with fiscal relief as IHSS costs, largely outside of the counties control, continued to grow rapidly. Because nonfederal IHSS costs have grown faster than the MOE in recent years, the state has taken on an increasing share of IHSS program costs.
https://lao.ca.gov/Publications/Report/5166

The 2026-27 Budget: CalWORKs

Feb 18, 2026 - The state also counts significant state expenditures outside of CalWORKs toward meeting its MOE requirement. Figure  4 accounts for the proposed use of California ’s $3.7  billion in TANF funds in 2026-27.
https://lao.ca.gov/Publications/Report/5122

The 2026-27 Budget: California Education Learning Lab

Mar 25, 2026 - CCC faculty receive a certain number of flex days so they can take time outside of teaching to pursue professional development activities, including developing new course designs, tools, and materials.
https://lao.ca.gov/Publications/Report/5171