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

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 2021-22 Budget: Business Tax Incentives

Jan 28, 2021 - Using the evaluation framework outlined in this report, we offer the following recommendations on the Governor ’s proposals: Explore Alternative Approaches to Elective S Corporation Tax. The general concept behind the Governor ’s proposal has merit, but alternatives warrant the Legislature ’s consideration.
https://lao.ca.gov/Publications/Report/4327

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 2026-27 Budget: Bureau for Private Postsecondary Education

Mar 25, 2026 - BPPE ’s special fund has a longstanding structural deficit, with expenditures exceeding revenues annually since 2014-15. The Governor ’s budget provides $10  million one-time General Fund for BPPE. The appropriation is intended to mitigate BPPE ’s structural deficit by allowing it to repay a recent special fund loan it received to cover litigation costs.
https://lao.ca.gov/Publications/Report/5169

The 2026-27 Budget: Re-Envisioning State Education Governance

Mar 18, 2026 - A Few Core Principles Could Guide Changes to the SPI ’s Role. The Governor ’s proposal is an opportunity for the Legislature to consider many changes to the SPI ’s role and duties. The previous governance studies and the state ’s experience with its current governance structure contain several lessons that could guide a redesign of the position.
https://lao.ca.gov/Publications/Report/5165

The 2026-27 Budget: Governor’s Office of Land Use and Climate Innovation Proposals

Mar 19, 2026 - Because we find LCI ’s funding requests to be justified, opting to provide less funding for some or all of these proposals would come with trade-offs. For example, lack of funding could limit the state ’s CEQA guidance capacity, delay or interrupt the implementation of some of LCI ’s programs, and result in noncompliance with statutory requirements.
https://lao.ca.gov/Publications/Report/5167

The 2026-27 Budget: California Education Learning Lab

Mar 25, 2026 - As Figure  1 shows, Learning Lab ’s ongoing funding has fluctuated somewhat over time. In 2024-25, the state reduced Learning Lab ’s ongoing General Fund to $5.5  million. Additionally, in 2024-25, the state restructured OPR and split it into two new offices: the Governor ’s Office of Service and Community Engagement and the Office of Land Use and Climate Innovation (LCI).
https://lao.ca.gov/Publications/Report/5171