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 - This year, for example, our outlook reflects our best estimates of the effects of H.R. 1: One Big Beautiful Bill Act on the state budget but does not make assumptions about future federal policy changes.
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 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

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 2021-22 Budget: Initial Comments on the Governor’s May Revision

May 17, 2021 - The 2021-22 Budget: Initial Comments on the Governor’s May Revision $1,137 $465 Note: This reflects our best understanding as of May 15, 2021; however, we are still receiving information from the administration about these proposals.
https://lao.ca.gov/Publications/Report/4432/2

The 2021-22 Budget: Initial Comments on the Governor’s May Revision

May 17, 2021 - The 2021-22 Budget: Initial Comments on the Governor’s May Revision $2,099 $510 Note: This reflects our best understanding as of May 15, 2021; however, we are still receiving information from the administration about these proposals.
https://lao.ca.gov/Publications/Report/4432/5

The 2021-22 Budget: Initial Comments on the Governor’s May Revision

May 17, 2021 - The 2021-22 Budget: Initial Comments on the Governor’s May Revision $7,246.0 $157.1 Note: This reflects our best understanding as of May 15, 2021; however, we are still receiving information from the administration about these proposals.
https://lao.ca.gov/Publications/Report/4432/7

The 2021-22 Budget: Initial Comments on the Governor’s May Revision

May 17, 2021 - The 2021-22 Budget: Initial Comments on the Governor’s May Revision $ 2,990 $217 Note: This reflects our best understanding as of May 15, 2021; however, we are still receiving information from the administration about these proposals.
https://lao.ca.gov/Publications/Report/4432/6

California's Legislative Analyst's Office and the Value of Independence

Nov 15, 2024 - Our purpose is not to align with the executive branch but to provide the Legislature with the independent, critical analysis it needs to make informed decisions that best serve the public interest. Subscribe | California State Legislature | Online Voter Registration | Privacy Policy | Accessibility Legislative Analyst's Office | The California Legislature's Nonpartisan Fiscal and Policy Advisor 925 L Street, Suite 1000 Sacramento, CA 95814 | (916) 445-4656
https://lao.ca.gov/Publications/Report/4938