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

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

Building Reserves to Prepare for a Recession

Mar 7, 2018 - By most measures, the recession of the early 1990s was more severe than the dot ‑com bust in the early 2000s. For example, unemployment in California reached 9. 7  p ercent in mid ‑ to late ‑1992, but peaked at 6. 9  p ercent after the dot ‑com bust.
https://lao.ca.gov/Publications/Report/3769

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 2018-19 May Revision: LAO Economic Outlook

May 12, 2018 - The typical PE ratio since 1990 is 21 (19 if the dot-com bubble of the late 1990s and early 2000s is excluded). Similar to the price-to-earnings ratio, the home price-to-rent ratio is used to gauge if home prices are in line with underlying demand for housing.
https://lao.ca.gov/Publications/Report/3829

The 2019-20 Budget: California Spending Plan—Debt Liabilities

Oct 17, 2019 - First, in each of the four fiscal years of the MOU (2019 ‑20, 2020 ‑21, 2021 ‑22, and 2022 ‑23), the Motor Vehicle Account will contribute $25  million —totaling to $100  million over the four years —to the highway patrol retirement benefit.
https://lao.ca.gov/Publications/Report/4106

The 2025-26 Budget: Initial Comments on the Governor's May Revision

May 17, 2025 - In addition, the administration includes roughly 70 other proposals, each with an estimated cost of less than $100  million. ( Appendix 1 provides a full listing of these items.) All Other Changes Improve Budget Bottom Line by $2   Billion.
https://lao.ca.gov/Publications/Report/5044

The 2023-24 Budget: Overview of the Spending Plan (Final Version)

Oct 16, 2023 - Appendix 4, Figure 4 Remaining Large One ‑Time and Temporary Augmentations From the 2021 ‑22 and 2022 ‑23 Budget Packages: Housing and Homelessness General Fund (In millions) Homeless Housing, Assistance, and Prevention Program (HHAPP) $1,100 Veteran Housing and Homeless Prevention Program 50 $345 $100 a By the time the HHAPP costs are incurred, the program will have transferred to from BCSH Agency to HCD.
https://lao.ca.gov/Publications/Report/4788/4

The 2023-24 Budget: Overview of the Spending Plan (Final Version)

Oct 16, 2023 - The budget provides about $2   billion to the SFP in 2023 ‑24, which is $100   million less than the previously intended augmentation, and continues to assume an additional $875   million will be provided in 2024 ‑25.
https://lao.ca.gov/Publications/Report/4788