How Have Past Stock Market Downturns Affected Income Tax Revenue? [EconTax Blog]

Mar 9, 2026 - The dot-com example below illustrates this pattern. In practice, this means the state could see continued but weakened revenue growth for some time after a correction before the outlook turns clearly negative.
https://lao.ca.gov/LAOEconTax/Article/Detail/852

How Have Past Stock Market Downturns Affected Income Tax Revenue? [EconTax Blog]

Mar 9, 2026 - The dot-com example below illustrates this pattern. In practice, this means the state could see continued but weakened revenue growth for some time after a correction before the outlook turns clearly negative.
https://lao.ca.gov/LAOEconTax/article/Detail/852

The 2026-27 Budget: Office of Emergency Services Next Generation 911 System

Feb 27, 2026 - We  also recommend that the Legislature direct OES to develop and update (on a quarterly basis) a five ‑year cost outlook for legacy 911, supporting dispatch centers, and Next Generation 911. Consider Governance Options and Oversight for the Long Term.
https://lao.ca.gov/Publications/Report/5145

The 2026-27 Budget: University of California

Feb 26, 2026 - Given this context, if the Legislature wishes to continue providing base increases to UC despite the challenging budget outlook, it could consider approving smaller increases that are more closely aligned with current inflationary benchmarks —such as the 2.41  percent base increase proposed for community colleges.
https://lao.ca.gov/Publications/Report/5143

The 2026-27 Budget: How to Use One-Time Revenue Improvements [EconTax Blog]

Feb 20, 2026 - Recent stock market performance continues to boost income tax collections. In our Fiscal Outlook, we strongly advised the Legislature to treat near-term strength in tax collections as temporary because we expect these gains to reverse. Further, the state faces significant structural deficits in the future.
https://lao.ca.gov/LAOEconTax/Article/Detail/850

The 2026-27 Budget: How to Use One-Time Revenue Improvements

Feb 20, 2026 - In our Fiscal Outlook , we strongly advised the Legislature to treat near-term strength in tax collections as temporary because we expect these gains to reverse. Further, the state faces significant structural deficits in the future.
https://lao.ca.gov/Publications/Report/5133

The 2026-27 Budget: How to Use One-Time Revenue Improvements [Publication Details]

Feb 20, 2026 - Recent stock market performance continues to boost income tax collections. In our Fiscal Outlook, we strongly advised the Legislature to treat near-term strength in tax collections as temporary because we expect these gains to reverse. Further, the state faces significant structural deficits in the future.
https://lao.ca.gov/Publications/Detail/5133

The 2026-27 Budget: California Student Aid Commission

Feb 17, 2026 - Given the state ’s fiscal outlook, the Legislature likely will need to consider not only this MCS proposal but many other budget ‑balancing proposals over the next couple of years. Given the MCS program has significant overlap with the Cal Grant program, is less targeted to lower ‑income students, and is more complex to convey and administer than other financial aid programs, reducing MCS award coverage could be among the least disruptive choices the Legislature  faces.
https://lao.ca.gov/Publications/Report/5127

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

Feb 10, 2026 - As a result, avoiding approval of policies and proposals that would increase out ‑year spending until the state ’s fiscal outlook improves would be prudent. Below are two examples for the Legislature to  consider.
https://lao.ca.gov/Publications/Report/5116

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

Feb 4, 2026 - Another option is to provide advance payments to districts toward their 2027 ‑28 funding allotments, consistent with an approach we outlined in our November 2025 report, The 2026‑27 Budget: Fiscal Outlook for Schools and Community Colleges .
https://lao.ca.gov/Publications/Report/5110