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: 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

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

Rethinking California's Reserve Policy

Apr 10, 2025 - While the state neared this cap in the 2019 ‑20 budget, the cap has only been operative twice: in 2022 ‑23 and 2023 ‑24. All  told, had there not been a cap on constitutional deposits, the state would have deposited about $2  billion more in reserves.
https://lao.ca.gov/Publications/Report/5028

The State Appropriations Limit

Apr 21, 2021 - Between 2013 ‑14 and 2019 ‑20, the amount of school funding counting toward the state ’s limit increased from $4. 9  b illion to $17. 3  b illion. Community colleges also experienced notable increases in their apportionment funding over this period, although their increases tended to be smaller than those for school districts.
https://lao.ca.gov/Publications/Report/4416

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

Jan 12, 2026 - Some of the largest spending augmentations proposed for the budget window include: (1) $76 million for utility replacement and site improvements at Exposition Park, (2) $67 million to the California Department of Forestry and Fire Protection for fixed‑wing aircraft pilot and mechanics contract increases, (3) $60 million to the Department of Health Care Access and Information for a reproductive
https://lao.ca.gov/Publications/Report/5101

The 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - The estimate of the requirement for 2024 ‑25 is up nearly $4.7  billion (4  percent) from the June 2024 level, but the budget appropriates just over $2.7  billion in additional funding for that year.
https://lao.ca.gov/Publications/Report/5079

The 2022-23 Budget: Initial Comments on the Governor's May Revision

May 16, 2022 - In  2019 ‑20, the state made its first withdrawal from the BSA  under the rules of Proposition  2 and the balance declined substantially. Since 2019 ‑20, reserves have grown in dollar terms as the state has continued to make new deposits into the BSA  as required by the Constitution.
https://lao.ca.gov/Publications/Report/4598

The 2021-22 Budget: The Governor’s Proposition 2 Proposals

Apr 26, 2021 - Figure 4 Outstanding State ‑Only Eligible Uses of Proposition 2 (In Billions)
https://lao.ca.gov/Publications/Report/4418