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

Mar 9, 2026 - This Time Might Be Different, but It Is Not Safe to Bet on It.   As our office warned last November, it now appears time to take seriously the notion that the stock market has become overheated. While there is a chance that this time is different and no such downturn is forthcoming, the risk appears strong enough that we have incorporated it into the state 's revenue outlook.  
https://lao.ca.gov/LAOEconTax/Article/Detail/852

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

Mar 9, 2026 - This Time Might Be Different, but It Is Not Safe to Bet on It.   As our office warned last November, it now appears time to take seriously the notion that the stock market has become overheated. While there is a chance that this time is different and no such downturn is forthcoming, the risk appears strong enough that we have incorporated it into the state 's revenue outlook.  
https://lao.ca.gov/LAOEconTax/article/Detail/852

The 2026-27 Budget: Overview of the Governor's Budget

Jan 12, 2026 - That said, recent budgets have set the SFEU bet ween $3.5  billion and $4.5  billion, so the Governor ’s budget proposal to set the balance to $4.5  billion is generally in line with recent policy.
https://lao.ca.gov/Publications/Report/5101

The 2026-27 Budget: County Administration and H.R. 1 Implementation

Mar 5, 2026 - H.R. 1 Puts Strain on State and County Budgets State Faces Structural Deficit … Even before considering H.R.  1, our office and the administration estimate that the state faces significant structural budget deficits starting in 2027 ‑28.
https://lao.ca.gov/Publications/Report/5149

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

Feb 20, 2026 - Further, the state faces significant structural deficits in the future. Accordingly, any windfall received from this revenue uptick represents an opportunity for the Legislature to prepare for future fiscal challenges.
https://lao.ca.gov/Publications/Report/5133

The 2026-27 Budget: California Highway Patrol Proposals

Mar 6, 2026 - While the MVA is facing out-year shortfalls, it has sufficient funding to accommodate the two proposed minor capital outlay proposals in 2026-27. Besides the policy rationale for following the historical CH P funding approach, the General Fund is projected to face significant out-year revenue shortfalls.
https://lao.ca.gov/Publications/Report/5152

The 2026-27 Budget: California Community Colleges

Mar 5, 2026 - Districts Regularly Face Various Other Cost Pressures. Similar to the other education segments, community college districts have faced recent increases in costs for health benefits, insurance, equipment, supplies, and utilities.
https://lao.ca.gov/Publications/Report/5150

The 2026-27 Budget: Framework for Approaching the Natural Resources, Environmental Protection, and Agriculture Budget

Feb 10, 2026 - Given the difficult choices it faces in crafting this year ’s budget, the Legislature may wish to reassess whether recent augmentations and previous agreements continue to reflect its highest priorities.
https://lao.ca.gov/Publications/Report/5116

The 2026-27 Budget: Judicial Branch

Feb 11, 2026 - Assessment No Concerns With Requested Amounts … As discussed in our January budget publication, The 2026‑27 Budget: Overview of the Governor’s Budget , the state faces serious multiyear deficits that will need to be addressed.
https://lao.ca.gov/Publications/Report/5113

The 2026-27 Budget: Department of Justice

Feb 11, 2026 - This is especially critical given the multiyear deficits facing the state that leave no capacity for new ongoing commitments, meaning any additional General Fund provided for firearms regulation would likely require reduced spending for other existing state programs.
https://lao.ca.gov/Publications/Report/5118