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 - The current discrepancy over the size of the state ’s budget deficit —$18  billion under the Legislative Analyst ’s Office estimate versus $3  billion in the Governor ’s budget —fits squarely within that pattern.
https://lao.ca.gov/Publications/Report/5104

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

The 2026-27 Budget: California State University

Feb 24, 2026 - It also would provide CSU with its remaining 3  percent ongoing base increase ($151  million) associated with the 2025 ‑26 compact payment in  2028 ‑29. CSU Anticipates Receiving Additional Tuition Revenue in 2026 ‑27.
https://lao.ca.gov/Publications/Report/5142

The 2026-27 Budget: Judicial Branch

Feb 11, 2026 - This is less than the $106  million the trial courts could have retained under the current 3  percent cap. Background Judicial Branch Has Extensive Facility Needs. The judicial branch currently manages around 430 facilities across all 58 counties.
https://lao.ca.gov/Publications/Report/5113

The 2026-27 Budget: California Community Colleges

Mar 5, 2026 - For example, the state i ncreased funding for the Student Equity and Achievement Program by $24  million (5  percent) in 2021 ‑22 and another $25  million (5  percent) in 2022 ‑23. Figure 5 Certain Categorical Programs Have Received a COLA in Recent Years 2019 ‑20
https://lao.ca.gov/Publications/Report/5150

The 2026-27 Budget: Child Care and State Preschool

Mar 19, 2026 - Funding increases for State Preschool in 2021‑22 and 2022‑23 were primarily due to rate increases. In 2023‑24 and 2024‑25, the state made one‑time reductions to the program in recognition that funding provided exceeded the amount necessary to fund all State Preschool contracts.
https://lao.ca.gov/Publications/Report/5168

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

Feb 4, 2026 - Rather than establishing a stable base for Proposition  98 calculations, it has led the state to adopt a range of actions to avoid exceeding the prior ‑year guarantee. Most notably, this law was part of the rationale for the complicated funding maneuver the state adopted to address the unexpected drop in the 2022 ‑23 guarantee.
https://lao.ca.gov/Publications/Report/5110

The 2026-27 Budget: Higher Education Overview

Feb 5, 2026 - For instance, under the current budget construction, the state has committed to provide CSU and UC with 3  percent base increases in 2028 ‑29, even though the state faces a large projected deficit in 2028 ‑29.
https://lao.ca.gov/Publications/Report/5112