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 - 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

The 2024-25 Budget: Initial Comments on the Governor’s May Revision

May 17, 2024 - Spending-related solutions (including both school and community college spending and other spending) total $48  billion and represent nearly 90  percent of the total solutions. Spending-related solutions include reductions, fund shifts, delays, and reversions.
https://lao.ca.gov/Publications/Report/4902

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: Overview of the Spending Plan (Final Version)

Oct 27, 2021 - Human Services: Discretionary Spending Proposals in the 2021 ‑22 Budget Package General Fund (In Millions) Expand APS to older adults aged 60 and over and enhance services — Fund county costs associated with CalFresh simplifcations — Augment CFAP monthly benefits to their maximum per household size $24 Expand CFAP benefits to some previously ineligible immigrants — Augment CFAP benefits by 15
https://lao.ca.gov/Publications/Report/4448/1

The 2021-22 Budget: The Governor’s Proposition 2 Proposals

Apr 26, 2021 - Specifically, under our estimates, 10  percent of historical scenarios are below the Department of Finance ’s (DOF ’s) forecast and 90  percent of scenarios are above DOF ’s forecast for 2021 ‑22. That is, although the state has historically underestimated capital gains revenues, the data to date suggest the state is unlikely to do so with the Governor ’s budget estimates.
https://lao.ca.gov/Publications/Report/4418

The 2024-25 Budget: Proposition 2 Debt Payment Proposals

Mar 20, 2024 - This would have the effect of reducing state General Fund costs by about $90  million to $100  million in 2024 ‑25. Maximizing Savings in the Multiyear The main benefit of this alternative is that it would help address the state ’s multiyear deficits.
https://lao.ca.gov/Publications/Report/4887

The 2022-23 California Spending Plan: Other Provisions

Sep 27, 2022 - Chapter  878 of 2022 (SB  951, Durazo) increases the weekly benefit amount for the state ’s PFL and DI programs to 70  percent of recent wages for most workers and to 90  percent of recent wages for lower-income workers.
https://lao.ca.gov/Publications/Report/4626