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: Streamlining California’s Affordable Housing Funding System

Mar 6, 2026 - The  Governor ’s stated goal for his proposals is to reduce time and cost for developers to build their capital stack and construct projects. Yet, as currently proposed, the Legislature would have no way to assess the extent to which policy changes have that desired impact.
https://lao.ca.gov/Publications/Report/5154

The 2026-27 Budget: Governor’s Sustainable Aviation Fuel Tax Credit Proposal

Feb 24, 2026 - The above policies work together to create a “stack ” of incentives for SAF production. The total value of this stack depends on various factors such as LCFS and RFS credit prices, as well as the feedstocks used, but cumulatively could total a  couple dollars per gallon for SAF producers.
https://lao.ca.gov/Publications/Report/5139

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

Feb 24, 2026 - The administration has not yet determined the extent to which this new proposed program could be used in combination with other existing programs (sometimes referred to as “stacking ”). However, given the number of existing programs and policies aimed at incentivizing ZEVs, a potential for duplication exists, which would create challenges.
https://lao.ca.gov/Publications/Report/5140

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: 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

Refocusing the Workers’ Compensation Subsequent Injury Program

Jul 10, 2025 - Revisit How Pre ‑Existing Conditions Are Stacked Under Todd Decision. The final option to consider is reversing or narrowing the Todd case ruling that allows multiple pre ‑existing conditions to be stacked, thereby making it easier to obtain 100  percent permanent disability benefits.
https://lao.ca.gov/Publications/Report/5062

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