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 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 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 2024-25 California Spending Plan: Other Provisions

Oct 2, 2024 - The 2024-25 California Spending Plan: Other Provisions $4,850 $7,787 a Chapter 189 of 2023 (SB 104, Skinner) appropriated $73 million FF from the IIJA ’s Enabling Middle Mile Infrastructure program in 2023 ‑24. b Chapter 48 of 2022 (SB 189, Committee on Budget and Fiscal Review) included a legislative goal to appropriate $250 million GF in 2024 ‑25 for the middle ‑mile network. c
https://lao.ca.gov/Publications/Report/4934

The 2024-25 California Spending Plan: Other Provisions

Oct 2, 2024 - The 2024-25 California Spending Plan: Other Provisions $4,850 $7,787 a Chapter 189 of 2023 (SB 104, Skinner) appropriated $73 million FF from the IIJA ’s Enabling Middle Mile Infrastructure program in 2023 ‑24. b Chapter 48 of 2022 (SB 189, Committee on Budget and Fiscal Review) included a legislative goal to appropriate $250 million GF in 2024 ‑25 for the middle ‑mile network. c
https://lao.ca.gov/Publications/Report/4934/governors-office-of-emergency-services

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 2021-22 Budget: The Governor’s Suspension Proposal

Jan 29, 2021 - Figure 2 Programs or Augmentations Subject to Suspension and Proposed in Governor ’s Budget Program Use of Proposition  56 revenues for provider payment increases X Continued restoration of 7  percent service hour reduction X Extension of coverage for postpartum mental health X Non ‑enforcement of uniform holiday schedule policy X Funding for Family Urgent Response System X Augmentation for
https://lao.ca.gov/Publications/Report/4328

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

Oct 27, 2021 - Control Section 11. 95 c reates a new fund —the HCBS ARP Fund —dedicated to supporting the implementation of new HCBS enhancements and expansions. The administration is allowed to oversee and expend the HCBS ARP funds through the annual budget process or through written midyear notifications to the Legislature.
https://lao.ca.gov/Publications/Report/4448