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

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 2025-26 Budget: Multiyear Budget Outlook

May 24, 2025 - IHSS solutions have some overlap with Medi-Cal, including terminating services for adults with unsatisfactory immigration status and reinstating the asset test. In addition, the state would lower the IHSS provider overtime cap, among other solutions.
https://lao.ca.gov/Publications/Report/5052

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

The 2025-26 Budget: Undertaking Fiscal Oversight

Feb 24, 2025 - For instance, California Advancing and Innovating Medi-Cal, a recent initiative to test new ways of delivering services, could be a focus of Medi -Cal oversight. Focusing on key elements of larger programs can provide the Legislature more detailed and practicable insight into program dynamics.
https://lao.ca.gov/Publications/Report/4983

The 2024-25 California Spending Plan: Other Provisions

Oct 2, 2024 - Monthly meetings will include updates on any pilot GenAI projects undertaken by departments, such as the first five pilot projects currently in testing . The legislation also requires pilot projects to adhere to specific data privacy requirements.
https://lao.ca.gov/Publications/Report/4934

The 2024-25 California Spending Plan: Other Provisions

Oct 2, 2024 - Monthly meetings will include updates on any pilot GenAI projects undertaken by departments, such as the first five pilot projects currently in testing . The legislation also requires pilot projects to adhere to specific data privacy requirements.
https://lao.ca.gov/Publications/Report/4934/governors-office-of-emergency-services

The 2021-22 Budget: Overview of the Governor's Budget

Jan 10, 2021 - This would allow time for schools to ramp up testing capabilities an d address other implementation issues with a smaller group of students and staff. Alternatively, the Legislature could direct resources to expanding statewide testing capacity and infrastructure that would allow schools to more easily access routine testing as a way to support school reopening.
https://lao.ca.gov/Publications/Report/4309