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

The 2026-27 Budget: Proposed Elimination of State Environmental Positions

Feb 17, 2026 - If eliminated, they would generate annual sav ings of $45  million ($19  million from the General Fund and $25  million from special funds). We find that eliminating certain positions could have undesirable programmatic impacts because they serve important purposes, even if they happen to be vacant for a period of time.
https://lao.ca.gov/Publications/Report/5124

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: CDTFA’s Cannabis and Tobacco Programs

Feb 23, 2026 - This program is a key element of the Master Settlement Agreement that California and 45 other states reached with the four largest cigarette manufacturers in 1998. The California Electronic Cigarette Excise Tax Program administers a 12.5  percent tax on retail sales of e ‑cigarettes.
https://lao.ca.gov/Publications/Report/5132

The Bay-Delta Plan and Voluntary Agreements: Ensuring Effective Legislative Oversight

Mar 18, 2026 - This percentage of unimpaired flows could be lowered to 45  percent or 35  percent in certain water supply circumstances. Key LAO Takeaways Long Delays in Updating the Bay ‑Delta Plan Further Threaten Native Fish.
https://lao.ca.gov/Publications/Report/5163

The 2026-27 Budget: Department of Developmental Services

Mar 13, 2026 - This federal HCBS funding has historically supported about 35  percent to 45  percent of total costs in DDS. Of the DDS consumers enrolled in Medi ‑Cal, the majority (about 60  percent based on the most recent available data) qualify automatically because they receive Supplemental Security Income/State Supplementary Payment (SSI/SSP).
https://lao.ca.gov/Publications/Report/5157