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: Department of Developmental Services

Mar 13, 2026 - Finally, the adult caseload is also affected by the trend that lifespans for people with intellectual and developmental disabilities have generally increased over time due to improved access to services and supports.
https://lao.ca.gov/Publications/Report/5157

The 2026-27 Budget: Child Welfare

Mar 3, 2026 - Children ’s Crisis Continuum Pilot $60 million one ‑time in 2021 ‑22, most of which is available through June 30, 2026. Of the total amount, $4 million is available through June 30, 2027 to allow time to prepare a final report for the Legislature by April 1, 2027.
https://lao.ca.gov/publications/report/5147

The 2026-27 Budget: California Competes Extension

Mar 18, 2026 - Finally, agreements include recapture provisions that allow GO-Biz to reduce or reclaim credits if recipients fail to meet hiring or investment commitments. Empirical Evidence Points to Effectiveness of Tax Credit for Job Creation.
https://lao.ca.gov/Publications/Report/5162

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

Feb 4, 2026 - Finally, we provide our recommendations for the  Legislature. Overall Structure Contains Nearly $9.7   Billion in New School Spending Proposals. Of the new spending, the Governor proposes to allocate more than $5.9  billion for one ‑time activities and $3.7  billion for ongoing augmentations ( Figure  7 ).
https://lao.ca.gov/Publications/Report/5110

The 2026-27 Budget: Proposed Elimination of State Environmental Positions

Feb 17, 2026 - The final budget agreement instead eliminated fewer positions (4,994) and provided the Legislature additional time to review 1,009 additional positions which we refer to as “residual: ” (1)  those associated with implementing legislation chaptered in 2022 and 2023 across numerous departments, and (2)  all of those in nine specified departments which we highlight in Figure  1.
https://lao.ca.gov/Publications/Report/5124

The 2026-27 Budget: Medi-Cal Analysis

Mar 2, 2026 - Finally, the timing of caseload reductions is also uncertain and has important implications for the budget year. Our estimate of total coverage losses by June 2027 is higher than the administration ’s by about 280,000, largely because we assume most disenrollment among existing enrollees would occur within roughly 12 months of implementation rather than 18 months.
https://lao.ca.gov/Publications/Report/5146

The 2026-27 Budget: Proposed Zero-Emission Vehicle Incentive

Feb 24, 2026 - Finally, we have concerns that the creation of a new program adds complexity and potential duplication. In light of these factors and the constrained state budget condition, we recommend the Legislature reject the proposal.
https://lao.ca.gov/Publications/Report/5140