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

The 2022-23 Budget: Overview of the Spending Plan

Oct 12, 2022 - Under the plan, all four ‑year old children will be eligible by 2025 ‑26. (Previously, only children born between September 2 and December 2 were eligible.) The Legislature and Governor also agreed the state would cover the associated costs by adjusting the Proposition  98 formulas to increase the share of General Fund revenue allocated to schools.
https://lao.ca.gov/Publications/Report/4616

The 2021-22 Budget: Overview of the Spending Plan (Final Version)

Oct 27, 2021 - Health: Discretionary Spending Proposals in the 2021 ‑22 Budget Package General Fund (In Millions) Behavioral Health Continuum Infrastructure Program — School behavioral health partnerships and capacity — Children and Youth Behavioral Health Initiative state operations — Behavioral Health Services and Supports Platform — All Children Thrive Program
https://lao.ca.gov/Publications/Report/4448/1

The State Appropriations Limit

Apr 21, 2021 - Trends in the state ’s population —both for civilians and school ‑aged children —also are determinants of the growth in the limit. Over the last decade, state population overall and of school ‑aged children has been flat or declining.
https://lao.ca.gov/Publications/Report/4416

The 2023-24 Budget: Overview of the Spending Plan (Final Version)

Oct 16, 2023 - Appendix 4, Figure 3 Remaining Large One ‑Time and Temporary Augmentations From the 2021 ‑22 and 2022 ‑23 Budget Packages: Health and Human Services General Fund (In millions) Service provider rate reform acceleration $34 Workforce stability initiative and administrative costs 1 Continue the Coordinated Family Support pilot program 11 Modernizing the Older Californians Act 87 Behavioral Health
https://lao.ca.gov/Publications/Report/4788/4

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 2021-22 Budget: Overview of the Spending Plan (Final Version)

Oct 27, 2021 - First, the spending plan includes roughly $ 1 b illion General Fund ($1. 5 b illion total funds) in 2021 ‑ 22 t o fund the Children and Youth Behavioral Health Initiative —a package of augmentations through multiple state departments intended to transform behavioral health service delivery for children and youth under age 25.
https://lao.ca.gov/Publications/Report/4448

The 2021-22 Budget: Multiyear Budget Outlook

May 23, 2021 - Moreover, the May Revision includes some proposals —like those related to behavioral health services for children and youth —that could increase costs in the future, although the administration does not account for them.
https://lao.ca.gov/Publications/Report/4437

The 2023-24 Budget: Overview of the Spending Plan (Final Version)

Oct 16, 2023 - The budget package includes $2.7 billion in one time funds from various state and federal fund sources to support the following: (1) monthly rate supplement payments to providers based on region and number of enrolled children from January 1, 2024 through June 30, 2025; (2) a one-time provider lump-sum transitional payment; (3) a narrower definition of part-time care; (4) exten
https://lao.ca.gov/Publications/Report/4788