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

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 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 2026-27 Budget: Overview of the Governor's Budget

Jan 12, 2026 - The second would extend new eligibility rules (such as work requirements) for certain federally funded population s to additional immigrant groups with state ‑only ‑funded comprehensive coverage. The proposals reduce costs by around $900  million in 2026 ‑27, with savings in future years ramping up to a few billion dollars annually.
https://lao.ca.gov/Publications/Report/5101

The 2024-25 California Spending Plan: Other Provisions

Oct 2, 2024 - For example, budget trailer legislation provides DGS with broader authority to delegate contracting for public works projects to state agencies. Additionally, the budget package includes legislation allowing DGS to use job order contracting for public works projects.
https://lao.ca.gov/Publications/Report/4934

The 2024-25 California Spending Plan: Other Provisions

Oct 2, 2024 - For example, budget trailer legislation provides DGS with broader authority to delegate contracting for public works projects to state agencies. Additionally, the budget package includes legislation allowing DGS to use job order contracting for public works projects.
https://lao.ca.gov/Publications/Report/4934/governors-office-of-emergency-services

The 2025-26 Budget: Overview of the Spending Plan

Oct 16, 2025 - As of this writing, DOF is still working on identifying the list of those funds to borrow from to achieve this target. Proposition   98 “Settle Up ” ($1.9   Billion). Proposition  98 (1988) sets a minimum funding requirement for schools and community colleges based on formulas in the State Constitution.
https://lao.ca.gov/Publications/Report/5079

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

Flexible Funding to California in the American Rescue Plan

Mar 23, 2021 - That guidance will be important to our understanding of how the state can spend the funds —for example, what purposes will be allowable or prohibited —and how some of the specific restrictions will work.
https://lao.ca.gov/Publications/Report/4407

The State Appropriations Limit [Publication Details]

Apr 21, 2021 - The State Appropriations Limit [Publication Details] HTML Description: This report: (1) describes how appropriations limits work for the state, school districts, and local governments in California; (2) explains why the limit is a constraint for state government; and (3) concludes with a variety of short- and long-term policy options—both of which we think the Legislature will need to take—in response to the issue.
https://lao.ca.gov/Publications/Detail/4416