How Have Past Stock Market Downturns Affected Income Tax Revenue? [EconTax Blog]

Mar 9, 2026 - By most measures, the global financial crisis was more severe than the dot-com crash. The state 's unemployment rate, for example, peaked at 7 percent following the dot-com crash but reached nearly double that during the financial crisis and remained elevated for much longer.
https://lao.ca.gov/LAOEconTax/Article/Detail/852

How Have Past Stock Market Downturns Affected Income Tax Revenue? [EconTax Blog]

Mar 9, 2026 - By most measures, the global financial crisis was more severe than the dot-com crash. The state 's unemployment rate, for example, peaked at 7 percent following the dot-com crash but reached nearly double that during the financial crisis and remained elevated for much longer.
https://lao.ca.gov/LAOEconTax/article/Detail/852

California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - Throughout the mid-to-late 1990s, the stock market boomed over optimism around the Internet and dot-com start-ups. Strong tax revenue trends from this boom generated large budget surpluses that ultimately gave way to serious deficits once the bubble burst and PIT revenues declined nearly 30  percent.
https://lao.ca.gov/Publications/Report/5104

Oversight of certain public benefit artificial intelligence (AI) companies. [Ballot]

Jan 20, 2026 - Civil penalties on covered co mpanies may be assessed as a percentage of annual gross revenue, beginning at 5 percent for initial violations and increasing to as much as 100 percent for violations that remain u ncured over specified time periods.
https://lao.ca.gov/BallotAnalysis/Initiative/2025-033

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

Home Price Update: October 2021 [EconTax Blog]

Nov 18, 2021 - Previous recessions have had disparate effects on home prices: they were largely unaffected by the collapse of the dot-com bubble in 2001, while in the late 2000s the collapse of the housing bubble was the single biggest factor that led to the financial crisis.
https://lao.ca.gov/LAOEconTax/Article/Detail/714

Home Prices Update: September 2021 [EconTax Blog]

Oct 20, 2021 - Previous recessions have had disparate effects on home prices: they were largely unaffected by the collapse of the dot-com bubble in 2001, while in the late 2000s the collapse of the housing bubble was the single biggest factor that led to the financial crisis.
https://lao.ca.gov/LAOEconTax/Article/Detail/706

The 2025-26 Budget: Department of Developmental Services

Mar 5, 2025 - For decades, the state paid DDS direct care staff (also referred to as direct service professionals) according to an outdated and overly complicated rate structure that had not kept up with rising costs over time.
https://lao.ca.gov/Publications/Report/5008

The 2023-24 Budget: May Revenue Outlook [EconTax Blog]

May 13, 2023 - For example, our weak revenue forecast over the next couple years largely is based on the historical observation that when economic conditions are similar to today there is a strong chance of a slowdown in the near future.
https://lao.ca.gov/LAOEconTax/Article/Detail/774

The 2022-23 Budget: Department of Developmental Services

Mar 29, 2022 - This significant year ‑over ‑year growth in DDS spending follows the spending growth trend over the past ten years, as shown in Figure  1 . Primary drivers of the year ‑over ‑year General Fund growth include: growth in caseload, increased utilization of services, additional costs for ramping up 2021 ‑22 initiatives, and the cost of a temporary 6.2  percentage point increase in federal Medicaid funding  ending.
https://lao.ca.gov/Publications/Report/4577