California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - The Internet obviously has been a transformative innovation for society and the economy, but early on, financial markets valued dot-com and Internet firms above what their revenue-generating capacity warranted at the time.
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

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

Oct 27, 2021 - (The multiyear spending agreement anticipates additional appropriations totaling $ 950 m illion General Fund over 2022 ‑23 and 2023 ‑24 for CPUC to provide last ‑mile project grants.) $ 50 m illion General Fund to CPUC to operate a “loan loss reserve fund ” to help local entities and nonprofit organizations obtain financing for their broadband internet service projects.
https://lao.ca.gov/Publications/Report/4448

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 2023-24 California Spending Plan: Other Provisions

Nov 8, 2023 - Chapter 45 of 2023 (AB 127, Committee on Budget) creates the State Middle-Mile Broadband Enterprise Fund to receive fees from internet service providers, government entities, and other users of the middle-mile network.
https://lao.ca.gov/Publications/Report/4814

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 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 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 Spending Plan: Other Provisions

Sep 23, 2021 - In addition, Visit California is required to post on its internet website financial reports that it currently shares only with assessed tourism industry businesses. Office of the Small Business Advocate Financial Relief for Small Businesses and Nonprofits.
https://lao.ca.gov/Publications/Report/4452

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

Jan 10, 2021 - Examples include purchasing devices and internet connectivity for distance learning, cleaning and reconfiguring facilities, training teachers, and testing for the virus. However, the 2020 ‑21 budget allocated more than $7  billion in state and federal funds to address COVID-19-related costs and mitigate learning loss.
https://lao.ca.gov/Publications/Report/4309