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

Mar 9, 2026 - By most measures, the global financial crisis was more severe than the dot-com crash. The state 's unemployment rate, for example, peaked at 7 percent following the dot-com crash but reached nearly double that during the financial crisis and remained elevated for much longer.
https://lao.ca.gov/LAOEconTax/Article/Detail/852

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

Mar 9, 2026 - By most measures, the global financial crisis was more severe than the dot-com crash. The state 's unemployment rate, for example, peaked at 7 percent following the dot-com crash but reached nearly double that during the financial crisis and remained elevated for much longer.
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

The 2026-27 Budget: Child Care and State Preschool

Mar 19, 2026 - The administration has yet to provide key details, such as grant amounts, the allowable uses of funding, and time lines for when funding would be awarded. We recommend the Legislature request additional information from the administration regarding key elements of the infrastructure grant proposal.
https://lao.ca.gov/Publications/Report/5168

The 2026-27 Budget: Office of Emergency Services Next Generation 911 System

Feb 27, 2026 - After these dispatch centers have been migrated, OES will focus on deploying Next Generation 911 services to the Los  Angeles area, to help prepare for the 2028  Olympic and Paralympic games. In addition to these priorities, up to 20 other dispatch centers (those in most urgent need) will also be moved onto the statewide network.
https://lao.ca.gov/Publications/Report/5145

The 2026-27 Budget: Higher Education Overview

Feb 5, 2026 - The Legislature, for example, could consider providing CSU and UC with base increases more in line with the current CCC COLA rate of 2.41  percent. Alternatively, the Legislature could eliminate the base increases for UC and CSU altogether, thereby making the state ’s structural deficit more manageable to address and increasing the chances that core programs could be sustained moving forward.
https://lao.ca.gov/Publications/Report/5112

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

Feb 4, 2026 - (General Fund tax increases would increase the state’s constitutional requirements further, eroding some of the benefit to the budget’s bottom line.) These additional solutions would entail difficult decisions amidst an already tight budget.
https://lao.ca.gov/Publications/Report/5110

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

Jan 12, 2026 - Under two voter initiatives, the State Constitution requires the state to set aside a share of revenues for schools and community colleges (Proposition  98, 1988) and debt payments and reserve deposits (Proposition  2, 2014).
https://lao.ca.gov/Publications/Report/5101

Assessing a Shift to Enrollment-Based School Funding

Jan 6, 2026 - Proposition 98 Calculations California Constitution Requires ADA for Certain Proposition   98 Calculations. The Constitution sets forth three main tests (formulas) for calculating the Proposition  98 guarantee.
https://lao.ca.gov/Publications/Report/5100

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