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: Proposed Zero-Emission Vehicle Incentive

Feb 24, 2026 - California has two regions with the most critical air quality challenges in the nation —the South Coast Air Basin and the San Joaquin Valley. The regions need to make substantial reductions in criteria pollutants from all sources —specifically , nitrous oxides (NOx) and fine particulate matter —to meet federal air quality standards.
https://lao.ca.gov/Publications/Report/5140

The 2026-27 Budget: K-12 Proposals

Feb 19, 2026 - The administration ind icates it plans to modify this part of the proposal in the May Revision and may allow funds to be used for a broader set of activities related to community  schools. Effects of Community Schools Model Research Finds Benefits to Community Schools Model.
https://lao.ca.gov/Publications/Report/5131

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

Feb 10, 2026 - We also highlight ways the Legislature could consider modifying certain proposals —such as by shifting their fund source or downsizing their scope —if it finds a compelling rationale for their support but is constrained by the General Fund condition.
https://lao.ca.gov/Publications/Report/5116

Assessing a Shift to Enrollment-Based School Funding

Jan 6, 2026 - Legislature Could Consider Ways to Highlight High School Chronic Absenteeism Rates. Increasing transparency and accountability around high school chronic absenteeism rates would help bring greater focus to student attendance, particularly if the state were to shift to enrollment ‑based funding.
https://lao.ca.gov/Publications/Report/5100

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: University of California

Feb 26, 2026 - We then highlight notable spending trends over the past decade. Next, we describe the Governor ’s proposals relating to UC ’s base budget, assess those proposals, and make associated  recommendations.
https://lao.ca.gov/Publications/Report/5143

The Bay-Delta Plan and Voluntary Agreements: Ensuring Effective Legislative Oversight

Mar 18, 2026 - We then discuss key findings about the current draft plan update, highlighting the potential benefits of VAs, key uncertainties about implementation of VAs, questions about the potential effectiveness of VAs or regulatory changes to protect native fish, and the urgency of board action.
https://lao.ca.gov/Publications/Report/5163