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 2025-26 Budget: Initial Comments on the Governor's May Revision

May 17, 2025 - Smaller proposals, such as shifting nearly $300  million in General Fund spending to the Proposition  4 (2024) climate bond, account for the remaining difference. Absent Proactive Choices Last Year, Budget Problem Would Be Significantly Larger.
https://lao.ca.gov/Publications/Report/5044

The 2025-26 Budget: Overview of the Governor's Budget

Jan 13, 2025 - Increases Revenue by Around $300   Million. The Governor ’s budget proposes to change the rules about how taxable profits are determined for financial institutions. The administration estimates this change would increase revenues on an ongoing basis by around $300  million per year.
https://lao.ca.gov/Publications/Report/4951

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: Overview of the Spending Plan

Oct 16, 2025 - (Revenue ‑related solutions, totaling about $300  million, represent the small remainder.) Note that while the state is also making a $7.1  billion withdrawal from the BSA in 2025 ‑26, this withdrawal is not reflected in Figure  1 because it was authorized in the 2024 ‑25 budget package.
https://lao.ca.gov/Publications/Report/5079

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 2024-25 Budget: Overview of the Spending Plan

Sep 6, 2024 - For schools, the budget also provides an increase of $300  million ($179  million ongoing and $121  million one time) to cover cost increases related to universal school meals. For community colleges, the budget also provides (1)  $50  million ongoing for caseload increases in the Student Success Completion Grant program and (2)  $25  million ongoing to increase enrollment by 0.5  percent.
https://lao.ca.gov/Publications/Report/4922

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

Oct 27, 2021 - APS = Adult Protective Services; CFAP = California Food Access Program; Cal ‑OAR = California CalWORKs Outcomes and Accountability Review; COLA = cost ‑of ‑living adjustment; GF = General Fund; ARPA = Advanced Research Projects Administration; LCSAs = local child support agencies; FFPSA = Family First Prevention Services Act; DDS = Department of Developmental Services; MSSP=
https://lao.ca.gov/Publications/Report/4448/1