California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - In this way, our approach represents a hedge; estimated revenues are not as low as they would be in an outright downturn, nor are they as high as is possible if there is no downturn. This differs from the approach taken by the Governor.
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

Flexible Funding to California in the American Rescue Plan

Mar 23, 2021 - Flexible Funding to California in the American Rescue Plan Flexible Funding to California in the American Rescue Plan Total Funding Amounts $26  Billion in Fiscal Relief Funding to the State. The American Rescue Plan (ARP) included $350  billion in funding to state and local governments for fiscal recovery.
https://lao.ca.gov/Publications/Report/4407

The 2021-22 Spending Plan: Other Provisions

Sep 23, 2021 - To be eligible for a grant, a business must either (1)  commit to creating at least 500 new jobs, (2)  invest at least $10  million in a major construction or renovation project, or (3)  be located in a high-poverty or high-unemployment area of the state.
https://lao.ca.gov/Publications/Report/4452

Overview of American Rescue Plan: Implications for California [Publication Details]

Mar 18, 2021 - Overview of American Rescue Plan: Implications for California [Publication Details] Translate Our Website This Google ™ translation feature provided on the Legislative Analyst's Office (LAO) website is for informational purposes only.
https://lao.ca.gov/Publications/Detail/4405

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

A Framework for Allocating Federal Recovery Funds [Publication Details]

May 4, 2021 - A Framework for Allocating Federal Recovery Funds [Publication Details] A Framework for Allocating Federal Recovery Funds Format: HTML Description: In the coming months, the Legislature will face important decisions over how to use California’s share of the state fiscal recovery funds included in the American Rescue Plan (ARP).
https://lao.ca.gov/Publications/Detail/4422

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 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