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: Overview of the Governor's Budget

Jan 12, 2026 - The administration ’s revenue estimate represents a $42  billion upgrade from the budget act. This upgrade reflects strong income tax collections in recent months and an assumption that this strength will continue through 2026 ‑27.
https://lao.ca.gov/Publications/Report/5101