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 2024-25 Budget: Proposition 2 Debt Payment Proposals

Mar 20, 2024 - Although the state has already transferred the $1.7  billion payment to CalPERS associated with the 2023 ‑24 Proposition  2 requirement, how the funds would be applied to the state ’s unfunded liability has not yet been determined.
https://lao.ca.gov/Publications/Report/4887

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: Medi-Cal Fiscal Outlook

Nov 17, 2021 - Between 2021 ‑22 and 2022 ‑23, we project the phase out will raise General Fund costs in Medi ‑Cal by $1.7 billion. Then, in 2023 ‑24, the full phase out will raise General Fund costs by another $800 million.
https://lao.ca.gov/Publications/Report/4474

The 2023-24 Budget: California's Fiscal Outlook

Nov 16, 2022 - Specifically, annual General Fund contributions to CalPERS would be higher by $1.7  billion by the last year of our outlook. (A  corresponding upward adjustment to The California State Teachers ’ Retirement System was not necessary due to differing funding mechanisms and investment returns.)
https://lao.ca.gov/Publications/Report/4646

The 2022-23 California Spending Plan: Other Provisions

Sep 27, 2022 - Broadband Infrastructure As part of the 2021-22 spending plan, the administration and the Legislature agreed to spend $6  billion ($1.7  billion General Fund) over three fiscal years (starting in 2021-22) on broadband infrastructure.
https://lao.ca.gov/Publications/Report/4626

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 Spending Plan: Other Provisions

Sep 23, 2021 - COVID-19 Spending and Control Section 11.91 The 2021 ‑22 Budget Act provides $1.7  billion one time from the General Fund for coronavirus disease 2019 (COVID-19)-related activities. As shown in Figure  2, these funds are allocated to nine state departments.
https://lao.ca.gov/Publications/Report/4452

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

May 16, 2022 - The largest component is $3.2  billion for deferred maintenance ($1.7  billion for schools and $1.5  billion for community colleges). May Revision SAL Estimates. Figure  7 shows the state ’s final SAL position after accounting for all of the May Revision proposals.
https://lao.ca.gov/Publications/Report/4598

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