California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - Whereas California’s labor market has stagnated over the last two years, the S&P 500 stock index has appreciated roughly 50 percent over the same period. And most of this increase has come from skyrocketing share prices among a handful of firms associated with innovations in Artificial Intelligence (AI).
https://lao.ca.gov/Publications/Report/5104

The 2026-27 Budget: Contract to Achieve Operational Efficiencies [Publication Details]

Mar 10, 2026 - The budget assumed that the process changes resulting from the contract would reduce state costs by $500 million in 2025-26, growing to $2 billion in annual savings by 2028-29. This post provides background on the state’s recent efforts to identify efficiencies to achieve budget savings and our office’s comments and recommendations concerning the progress of the administration’s efforts to reduce state costs through this contract.
https://lao.ca.gov/Publications/Detail/5156

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

Local taxes. [Ballot]

Aug 14, 2025 - The tax is limited to 55 cents per $500 in property sale (or 0.11  percent). A city can opt to impose a documentary transfer tax of half that rate (that is, 27.5  cents per $500) when the property sale is within its boundaries.
https://lao.ca.gov/BallotAnalysis/Initiative/2025-006

Local taxes. [Ballot]

Jul 1, 2025 - The tax is limited to 55 cents per $500 in property sale (or 0.11 percent). A city can opt to impose a documentary transfer tax of half that rate (that is, 27.5 cents per $500) when the property sale is within its boundaries.
https://lao.ca.gov/BallotAnalysis/Initiative/2025-005

Local taxes. [Ballot]

Jul 1, 2025 - The tax is limited to 55 cents per $500 in property sale (or 0.11 percent). A city can opt to impose a documentary transfer tax of half that rate (that is, 27.5 cents per $500) when the property sale is within its boundaries.
https://lao.ca.gov/BallotAnalysis/Initiative/2025-004

Immunology and immunotherapy. [Ballot]

Dec 17, 2025 - Fiscal Effects Increased State Costs of About $500 Million Each Year for 25 Years to Repay the Bond. The estimated cost to repay the bond would be about $500 million each year over a 25-year period. Payments would be made from the state General Fund.
https://lao.ca.gov/BallotAnalysis/Initiative/2025-026

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - The stock market (S &P 500) has risen 50  percent in the last two years. Most of these gains come from the meteoric rise in the value of a handful of tech companies that investors believe will be major beneficiaries of recent advances in AI.
https://lao.ca.gov/Publications/Report/5091

The 2025-26 California Spending Plan: Housing, Homelessness and Local Government

Oct 22, 2025 - The budget authorizes $500  million for the state Low-Income Housing Tax Credit (LIHTC) program. (This amount is in addition to about $130  million in statutorily required state tax credits for the program in 2025-26.) 2025-26 is the seventh consecutive year the Legislature has authorized a $500  million tax credit.
https://lao.ca.gov/Publications/Report/5082