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

Updated "Big Three" Revenue Outlook (May 2026) [EconTax Blog]

May 7, 2026 - It is now hard to ignore that the stock market appears, on its face, to be in a speculative bubble, rivaled only by the dot-com boom and the Roaring Twenties. Such speculative episodes almost always end in dramatic reversals. 
https://lao.ca.gov/LAOEconTax/Article/Detail/856

Updated "Big Three" Revenue Outlook (May 2026) [EconTax Blog]

May 7, 2026 - It is now hard to ignore that the stock market appears, on its face, to be in a speculative bubble, rivaled only by the dot-com boom and the Roaring Twenties. Such speculative episodes almost always end in dramatic reversals. 
https://lao.ca.gov/LAOEconTax/article/Detail/856

Understanding The State’s Astonishing Cash Position

Sep 16, 2026 - Further, even though the state experienced a sharp revenue decline in 2022 ‑23, and significant budget deficits since, California has not been at risk of a cash crisis or a cash crunch as it has in previous revenue downturns, for example, during and immediately after the Great Recession, and in the early 2000s after the dot ‑com bust.
https://lao.ca.gov/Publications/Report/5198

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