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

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