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

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 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

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

Oct 27, 2021 - Higher Education: Discretionary Spending Proposals in the 2021 ‑22 Budget Package General Fund (In Millions) CSU Humboldt transition to polytechnic university — Deferred maintenance and energy efficiency projects — CSU Dominguez Hills capital outlay projects — CSU Stanislaus Stockton Center Acacia Building replacement — CSU Northridge Center for Equity in Innovation and Technology — Faculty
https://lao.ca.gov/Publications/Report/4448/1

The 2024-25 Budget: Overview of the Governor's Budget

Jan 13, 2024 - The 2024-25 Budget: Overview of the Governor's Budget $3,135 $4,677 BCH = Secretary for Business, Consumer Services, and Housing Agency; HHAPP = Homeless Housing, Assistance, and Prevention Program; FHC = Family Homelessness Challenge Grants; BSCC  =  Board of State and Community Corrections; CalFire = California Department of Forestry and Fire Protection; CalRecycle = California Department of
https://lao.ca.gov/Publications/Report/4825/1

The Definition of Qualified Capital Outlay for the State Appropriations Limit

Feb 18, 2022 - Such purchases include, for example, furniture and computers. Similarly, we would not consider operations costs (that do not improve an asset) as excludable. Do Purchases of Assets Count if a Single Unit is Worth Less Than $100,000, Even if the Value of the Total Purchase Is Greater?
https://lao.ca.gov/Publications/Report/4547

The State Appropriations Limit

Apr 21, 2021 - To aid the Legislature in constructing its plan, Figure  7 summarizes the options presented in this report, when each option could take effect, and our estimate of the potential magnitude of each potential change.
https://lao.ca.gov/Publications/Report/4416

The 2021-22 Budget: The Governor’s Suspension Proposal

Jan 29, 2021 - For example, the funding for California State University and University of California summer financial aid and some child welfare programs, like the family urgent response system and Los Angeles County public health nurse pilot, were created in recent years.
https://lao.ca.gov/Publications/Report/4328