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

Overview of American Rescue Plan: Implications for California [Publication Details]

Mar 18, 2021 - Presented to: Assembly Subcommittee No. 6 on Budget Process, Oversight and Program Evaluation Hon. Philip Y. Ting, Chair
https://lao.ca.gov/Publications/Detail/4405

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - For California, the dot ‑com era —when stocks rose and then fell precipitously in response to widespread adoption of the internet —offers the most salient example. The internet has proven to be a transformative technology and, yet, the stock market ’s initial reaction was clearly overly exuberant.
https://lao.ca.gov/Publications/Report/5091

Whether or Not to Tap Reserves to Solve Estimated Budget Problem Emerges as Key Fiscal Decision Facing California’s Legislature

Apr 19, 2023 - Other downturns, such as the 2001 so-called dot-com recession, had severe fiscal implications while inflicting somewhat milder economic damage. The 2008 Great Recession had brutal effects on both the state ’s economy and budget.
https://lao.ca.gov/Publications/Report/4762

Rethinking California's Reserve Policy

Apr 10, 2025 - In March of 2004, on the heels of the dot ‑com bust, voters passed Proposition  58, which created the Budget Stabilization Account (BSA). In the 2006 ‑07 budget, the Legislature deposited $472  million into the BSA and in 2007 ‑08 deposited $1.5  billion.
https://lao.ca.gov/Publications/Report/5028

The 2024-25 Budget: Proposition 2 Debt Payment Proposals

Mar 20, 2024 - As a result of this statute, the state regularl y contributes a percentage of pay above what is actuarially required and established by the CalPERS Board. In 2024 ‑25, the state ’s supplemental payment under this section ranges from 0.1  percent of pay for Miscellaneous employees to 1.65  percent of pay for employees in the Peace Officer and Firefighter pension and is expected to total less than $100  million General Fund.
https://lao.ca.gov/Publications/Report/4887

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

The State Appropriations Limit

Apr 21, 2021 - The state ’s appropriations subject to the limit fell substantially during the dot ‑com bust in the early 2000s and again during the Great Recession due to the significant decline in state revenues during those downturns.
https://lao.ca.gov/Publications/Report/4416

The 2023-24 Budget: Considering Inflation's Effects on State Programs

Nov 16, 2022 - Fewer staff means higher caseloads, which can result in adverse impacts to program timeliness and accuracy, particularl y for redeterminations and case management. In another similar example, regional centers —which provide services to consumers with developmental disabilities —are funded by the state with a core staffing formula that largely has been frozen since 1991.
https://lao.ca.gov/Publications/Report/4647