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

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: Child Welfare

Mar 3, 2026 - The administration estimates that implementing the Tiered Rate Structure will cost more than $300  million General Fund in 2027-28, $500  million in 2028-29, and $700  million General Fund in 2029-30 (with some potential growth thereafter and ongoing).
https://lao.ca.gov/publications/report/5147

The 2026-27 Budget: Medi-Cal Analysis

Mar 2, 2026 - Long ‑Term Care Quality Assurance Fees Long ‑term care facilities $650 million to $700 million Portion of state cost of long ‑term care facility reimbursement rates. Ground Emergency Medical Transport (GEMT) Quality Assurance Fee Private GEMT providers $55 million Increased Medi ‑Cal payments to private ground emergency transport providers and General Fund savings. a Reflects revenue that is directly available to the state for higher provider rates and General Fund savings.
https://lao.ca.gov/Publications/Report/5146

The 2026-27 Budget: K-12 Proposals

Feb 19, 2026 - Based on the awards granted to date through CCSPP, we estimate the state could support roughly 700  additional schools with this amount. The  state likely would see demand from schools for additional one ‑time funding.
https://lao.ca.gov/Publications/Report/5131

The 2026-27 Budget: California Department of Corrections and Rehabilitation

Feb 23, 2026 - CDCR Spends Over $700   Million on Mental Health Care Annually. The Governor ’s budget proposes to spend $746  million for mental health ‑related expenses. This reflects a $6  million increase (nearly 1  percent) from the revised 2025 ‑26 level.
https://lao.ca.gov/Publications/Report/5137