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 2024-25 Budget: Overview of the Spending Plan

Sep 6, 2024 - (The budget package also reduces $96   million in General Fund that had been provided outside of the transportation infrastructure package for projects at the Port of Oakland.) The spending plan includes additional changes to transportation expenditures that do not affect planned funding totals.
https://lao.ca.gov/Publications/Report/4922

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

Oct 16, 2023 - The budget also reflects a $92  million reduction primarily from the General Fund in 2023 ‑24 (generally growing to $96  million annually beginning in 2025 ‑26) to reflect the closure of the Division of Juvenile Justice (DJJ) and resulting deactivation of three of its facilities.
https://lao.ca.gov/Publications/Report/4788

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

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

The State Appropriations Limit

Apr 21, 2021 - The state ’s appropriations subject to the limit fell substantially during the dot ‑com bust in the early 2000s and again during the Great Recession due to the significant decline in state revenues during those downturns.
https://lao.ca.gov/Publications/Report/4416

The 2021-22 Spending Plan: Other Provisions

Sep 23, 2021 - The first three —Control Sections 11.91, 11.95, and 11. 96 —provide the administration with additional flexibility to expend state and federal funds. The second two —Control Sections 19.56 and 19. 57 —provide appropriations for a variety of legislative priorities.
https://lao.ca.gov/Publications/Report/4452

The 2023-24 Budget: Multiyear Assessment

Feb 15, 2023 - Three of those —the recession in the early 1990s, the dot ‑com bust in the early 2000s, and the Great Recession —resulted in large revenue shortfalls and ensuing multiyear deficits, even for some years after each recession ended.
https://lao.ca.gov/Publications/Report/4687