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: How to Use One-Time Revenue Improvements

Feb 20, 2026 - Make a Smaller Withdrawal From the BSA. The Governor ’s budget also maintains a $7  billion withdrawal from the BSA in 2025-26. If a May Revision windfall exceeds the amount needed to fund the true up, we recommend the Legislature use those resources to reduce the size of this withdrawal.
https://lao.ca.gov/Publications/Report/5133

California Community Colleges Funding by Source [EdBudget]

Nov 17, 2025 - California Community Colleges Funding by Source [EdBudget] a Includes $788 million in withdrawals from the Proposition 98 Reserve. b Includes $50 million in withdrawals from the Proposition 98 Reserve. c Includes reimbursements.     
https://lao.ca.gov/Education/EdBudget/Details/1034

California Community Colleges Funding by Source [EdBudget]

Jan 21, 2026 - California Community Colleges Funding by Source [EdBudget] a Includes $44 million in withdrawals from the Proposition 98 Reserve. b Includes reimbursements. c The most recent data available is for 2024-25.
https://lao.ca.gov/Education/EdBudget/Details/1037

California Community Colleges Funding by Source [EdBudget]

Jul 23, 2025 - California Community Colleges Funding by Source [EdBudget] a Includes $788 million in withdrawals from the Proposition 98 Reserve. b Includes $50 million in withdrawals from the Proposition 98 Reserve. c Includes reimbursements.     
https://lao.ca.gov/Education/EdBudget/Details/978

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: Fiscal Outlook for Schools and Community Colleges

Nov 19, 2025 - Proposition 98 Reserve Reserve Withdrawal Required in 2026 ‑27. The Proposition  98 Reserve generally requires withdrawals when the guarantee is less than the previous year ’s guarantee, adjusted for inflation.
https://lao.ca.gov/Publications/Report/5093

Proposition 98 Funding Changes by Segment Since June [EdBudget]

Jan 15, 2026 - Amounts reflect deposit (+) or withdrawal (-).       c The state would be required to provide this funding in the future, assuming no decrease to the estimate of the Proposition 98 guarantee. Subscribe | California State Legislature | Online Voter Registration | Privacy Policy | Accessibility Legislative Analyst's Office | The California Legislature's Nonpartisan Fiscal and Policy Advisor 925 L Street, Suite 1000 Sacramento, CA 95814 | (916) 445-4656
https://lao.ca.gov/Education/EdBudget/Details/1061

The 2023-24 Budget: Multiyear Assessment

Feb 15, 2023 - Three of those —the recession in the early 1990s, the dot ‑com bust in the early 2000s, and the Great Recession —resulted in large revenue shortfalls and ensuing multiyear deficits, even for some years after each recession ended.
https://lao.ca.gov/Publications/Report/4687