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: Cap-and-Invest Expenditure Plan

Feb 10, 2026 - For example, the Metropolitan Transportation Commission in the Bay Area indicates that, consistent with the SB 125 plan it submitted to the Legislature, it programmed about $250 million of the anticipated funds which the Legislature has not yet appropriated for two Bay Area Rapid Transit expansion capital projects in order to help leverage billions of dollars in forthcoming federal support from the Capital Investment Grant Program.
https://lao.ca.gov/Publications/Report/5114

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

Jan 12, 2026 - First, after four years of projected deficits and a cumulative total of $125  billion in budget problems solved so far, the state ’s negative fiscal situation is now chronic. Second, structural deficits have grown —our November outlook is the most negative forecast of the budget ’s position since the pandemic.
https://lao.ca.gov/Publications/Report/5101

The 2026-27 Budget: Framework for Approaching the Natural Resources, Environmental Protection, and Agriculture Budget

Feb 10, 2026 - These chronic deficits have persisted even as the state ’s economy and revenues have grown and the Legislature has adopted solutions totaling more than $125  billion to address budget problems over the past four years, underscoring that the problem is structural rather than cyclical.
https://lao.ca.gov/Publications/Report/5116

The 2026-27 Budget: California Department of Corrections and Rehabilitation

Feb 23, 2026 - (This structural shortfall is in addition to an unallocated $125   million General Fund reduction in 2025 ‑26, growing to $375   million in 2027 ‑28 and ongoing, that the administration is expecting to achieve through operational efficiencies identified with the help of a contractor.
https://lao.ca.gov/Publications/Report/5137