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

The 2026-27 Budget: In-Home Supportive Services

Mar 18, 2026 - The Governor ’s 2026 ‑27 budget assumes the caseload will continue growing at this faster rate, estimating a growth rate of 10  percent in 2025 ‑26 and 8  percent in 2026 ‑27. State Demographic Shifts Have Also Contributed to Increased Caseloads.
https://lao.ca.gov/Publications/Report/5166

The 2026-27 Budget: Child Care and State Preschool

Mar 19, 2026 - The 2025 ‑26 budget provides $1.1  billion from CCDF and $329  million from TANF for child care programs. On January 8, 2026, California and the other states sued to prevent the freeze. A federal court initially granted a temporary restraining order that was followed by a preliminary injunction, ordering that funds continue to be available pending resolution of  the case.
https://lao.ca.gov/Publications/Report/5168

The 2026-27 Budget: Community College Facilities

Mar 17, 2026 - Of the project proposals that districts submitted for 2026-27, 7 out of 27 eligible modernization projects (26  percent) are included in the Governor ’s budget, compared to 3 out of 8 eligible growth projects (38  percent).
https://lao.ca.gov/Publications/Report/5159

The 2026-27 Budget: Department of Justice

Feb 11, 2026 - We recommend the Legislature modify the Governor ’s proposal to shift $8  million in BOF costs from the DROS Special Account to the General Fund annually through 2028-29. Specifically, we recommend approving this shift for only one year.
https://lao.ca.gov/Publications/Report/5118

The 2026-27 Budget: University of California

Feb 26, 2026 - As Figure   8 shows, salaries and benefits accounted for about three ‑fourths of UC spending in 2024 ‑25. Over the past decade, the share of spending devoted to compensation has increased, rising from 65   percent in 2015 ‑16.
https://lao.ca.gov/Publications/Report/5143

The 2026-27 Budget: Proposition 98 Guarantee and K-12 Spending Plan

Feb 4, 2026 - A revenue decline of this magnitude would reduce the Proposition  98 guarantee by about $8  billion. In such a scenario, the state could likely maintain existing programs, but would have to reject many of the Governor ’s proposals.
https://lao.ca.gov/Publications/Report/5110