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

Mar 9, 2026 - Revenues regained their nominal levels in 55 months after the dot-com bubble, 53 months following the global financial crisis, and 40 months after the 2022 rate hike drawdown. Multi-year revenue declines amplify the strain on the state budget during major market downturns.  
https://lao.ca.gov/LAOEconTax/Article/Detail/852

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

Mar 9, 2026 - Revenues regained their nominal levels in 55 months after the dot-com bubble, 53 months following the global financial crisis, and 40 months after the 2022 rate hike drawdown. Multi-year revenue declines amplify the strain on the state budget during major market downturns.  
https://lao.ca.gov/LAOEconTax/article/Detail/852

California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - Moreover, investors have been aggressive in taking on high levels of margin debt (borrowing to buy stocks), which has reached approximately three times the historical norm. These and other indicators are at levels previously only seen at times when the market was approaching a peak before entering a period of retrenchment.
https://lao.ca.gov/Publications/Report/5104

Oversight of certain public benefit artificial intelligence (AI) companies. [Ballot]

Jan 20, 2026 - If such changes affect company profits or employment levels in California, it would affect state and local tax revenues. Whether this woul d occur is uncertain. Summary of Major Fiscal Effects. 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: Supplemental Security Income/State Supplementary Payment (SSI/SSP) Program

Mar 3, 2026 - Figure 4 SSI/SSP Monthly Maximum Grant Levels a 2024 ‑25 (Actual) Percent of federal poverty level b 93% Percent of federal poverty level b 117% 116% 114% a The maximum monthly grants displayed refer to those for aged and disabled individuals and couples living in their own households, effective as of January 1 of the respective calendar year. b Compares grant level to federal poverty guidelines from the U.S.
https://lao.ca.gov/Publications/Report/5148

The 2026-27 Budget: Contract to Achieve Operational Efficiencies

Mar 10, 2026 - Difficult to Achieve Large Levels of Budgetary Savings Through Efficiencies Alone. Identifying efficiencies in state government can result in budgetary savings without reducing service levels. However, it is difficult to achieve large levels of savings through operational efficiencies alone (that is, without changes to policy or service levels).
https://lao.ca.gov/Publications/Report/5156

California New Car Registrations: January 2026 [EconTax Blog]

Mar 11, 2026 - Registrations rebounded substantially in the subsequent months but generally have remained below pre-pandemic levels.   For example, registrations in January 2026 were 15 percent lower than in January 2020.  
https://lao.ca.gov/LAOEconTax/Article/Detail/853

California New Car Registrations: January 2026 [EconTax Blog]

Mar 11, 2026 - Registrations rebounded substantially in the subsequent months but generally have remained below pre-pandemic levels.   For example, registrations in January 2026 were 15 percent lower than in January 2020.  
https://lao.ca.gov/LAOEconTax/article/Detail/853

The 2026-27 Budget: Governor’s Office of Land Use and Climate Innovation Proposals

Mar 19, 2026 - If the Legislature determines its budget cannot support the full requested amounts, it could consider downscaling the proposals and providing a lower level of funding. The resulting trade-off would be that LCI would not be able to provide the same level of service.
https://lao.ca.gov/Publications/Report/5167

The 2026-27 Budget: Child Care and State Preschool

Mar 19, 2026 - While enrollment has increased since 2020, it remains significantly below pre‑pandemic levels. In October 2024, State Preschool enrollment was roughly 40,000 students lower than October 2019 enrollment.
https://lao.ca.gov/Publications/Report/5168