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

Mar 9, 2026 - The three minor downturns  (1981, 1987, and 1990) led to income tax declines of less less than 10 percent (average of 5 percent), with revenues recovering quickly. The four major downturns were more severe, with income tax declines ranging from 17 percent to 30 percent (average of 24 percent).
https://lao.ca.gov/LAOEconTax/Article/Detail/852

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

Mar 9, 2026 - The three minor downturns  (1981, 1987, and 1990) led to income tax declines of less less than 10 percent (average of 5 percent), with revenues recovering quickly. The four major downturns were more severe, with income tax declines ranging from 17 percent to 30 percent (average of 24 percent).
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

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

Jan 20, 2026 - Such executives may be subject to penalties of up to $10 million per violation. In addition, certain willful misconduct —such as unauthorized expansion of AI capabilities or obstruction of investigations —would be punishable as a felony, with potential imprisonment of up to five years and fines of up to $10 million, or an amount equal to twice the financial gains resulting from the misconduct.
https://lao.ca.gov/BallotAnalysis/Initiative/2025-033

The 2026-27 Budget: California State University

Feb 24, 2026 - Growth in health care costs has been particularly notable the past three years (with the highest growth in 2023‑24 at 10 percent). Pension Contribution Rates Have Remained Relatively Flat in Recent Years.
https://lao.ca.gov/Publications/Report/5142

The 2026-27 Budget: Judicial Branch

Feb 11, 2026 - The judicial branch currently manages around 430 facilities across all 58 counties. Its facility program is responsible for various activities including maintaining these facilities, managing leases, and constructing new courthouses to replace outdated facilities.
https://lao.ca.gov/Publications/Report/5113

The 2026-27 Budget: California Department of Corrections and Rehabilitation

Feb 23, 2026 - For example, the California Department of Health Care Access and Information in 2022 estimated that there would be a shortage of psychiatrists and behavioral health providers in all 58 California counties by 2025, with 27 prisons located in counties experiencing high or severe shortages.
https://lao.ca.gov/Publications/Report/5137

The 2026-27 Budget: Proposition 4 Spending Plan

Feb 10, 2026 - The 2025 ‑26 budget package authorized the state to spend $3.5  billion, or slightly more than one ‑third, of the $10  billion total. This amount was approved via three different 2025 budget actions: (1) $181  million provided through Chapter  2 of 2025 (A B  100 , Gabriel) (these funds were available for departments to spend during the final few months of 2024 ‑25), (2) $2.9
https://lao.ca.gov/Publications/Report/5115

The 2026-27 Budget: Re-Envisioning State Education Governance

Mar 18, 2026 - Introduction California operates the nation ’s largest public school system, comprising 937 school districts, 1,257 charter schools, and 58 county offices of education. This year, these local agencies will educate nearly 5.8  million students, employ around 700,000 teachers and staff, and spend nearly $150  billion.
https://lao.ca.gov/Publications/Report/5165

The 2026-27 Budget: How to Use One-Time Revenue Improvements

Feb 20, 2026 - Our recent revenue post suggests an improvement in revenues of around $5 billion relative to the Governor’s budget estimates. Under the state’s constitutional budget formulas, a revenue increase of this magnitude would translate, very roughly, into a $2.5 billion improvement in the budget bottom line.
https://lao.ca.gov/Publications/Report/5133