California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - Despite our view that there is a strong possibility of a market downturn, however, our revenue forecast does not assume one will occur. Rather, we ’ve incorporated the elevated risk of a downturn into our estimates.
https://lao.ca.gov/Publications/Report/5104

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

The 2026-27 Budget: Judicial Branch

Feb 11, 2026 - This means that additional issues could be identified that drive further cost increases. The sizeable increase in funding raises questions on whether sufficient oversight was in place to appropriately assess the scope of work and costs before the project began.
https://lao.ca.gov/Publications/Report/5113

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

Feb 24, 2026 - For example, in recent years, the state has supported the Driving Clean Assistance and regional Clean Cars 4 All (CC4All) programs through periodic budget appropriations. These programs provide income ‑qualified households with rebates toward the purchase of ZEVs.
https://lao.ca.gov/Publications/Report/5140

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

Jan 12, 2026 - This  higher revenue assumption substantially improves the budget condition relative to our forecast and is the main driving difference between our estimates of the deficit. Higher Spending Estimates Erode Some of the Budget Improvement.
https://lao.ca.gov/Publications/Report/5101

The 2026-27 Budget: Department of Developmental Services

Mar 13, 2026 - Administration Requests One ‑Time Funding to Continue Planning for LOIS in 2026 ‑27. The Governor ’s budget proposes $5.7  million one ‑time General Fund to continue the PAL process for LOIS. At the time of this report, DDS was working to complete Stage 2 of the PAL process, or the Alternatives Analysis.
https://lao.ca.gov/Publications/Report/5157

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

The 2026-27 Budget: Bureau for Private Postsecondary Education

Mar 25, 2026 - The 2022-23 budget then provided BPPE with $24  million one-time General Fund over three years to repay this loan and cover its operational costs while BPPE developed a proposal for a new fee structure.
https://lao.ca.gov/Publications/Report/5169

The 2026-27 Budget: California Education Learning Lab

Mar 25, 2026 - For example, faculty from one UC campus and one CSU campus may be awarded a Learning Lab grant to improve calculus pass rates by making the curriculum more engaging for students. No avenue is in place, however, to scale these efforts.
https://lao.ca.gov/Publications/Report/5171