How Have Past Stock Market Downturns Affected Income Tax Revenue? [EconTax Blog]

Mar 9, 2026 - The three minor downturns  (1981, 1987, and 1990) led to income tax declines of less less than 10 percent (average of 5 percent), with revenues recovering quickly. The four major downturns were more severe, with income tax declines ranging from 17 percent to 30 percent (average of 24 percent).
https://lao.ca.gov/LAOEconTax/Article/Detail/852

How Have Past Stock Market Downturns Affected Income Tax Revenue? [EconTax Blog]

Mar 9, 2026 - The three minor downturns  (1981, 1987, and 1990) led to income tax declines of less less than 10 percent (average of 5 percent), with revenues recovering quickly. The four major downturns were more severe, with income tax declines ranging from 17 percent to 30 percent (average of 24 percent).
https://lao.ca.gov/LAOEconTax/article/Detail/852

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

Oversight of certain public benefit artificial intelligence (AI) companies. [Ballot]

Jan 20, 2026 - The measure would have the following major fiscal effects: Increased state costs that would likely be in the tens of millions of dollars annually to establish and operate a new regulatory commission overseeing certain public benefit AI com panies.
https://lao.ca.gov/BallotAnalysis/Initiative/2025-033

The 2026-27 Budget: Streamlining California’s Affordable Housing Funding System

Mar 6, 2026 - In such cases, this rigid approach would result in resources being tied up unnecessarily for most of the year, undercutting the state ’s priority of quickly deploying funds for developers to build projects.
https://lao.ca.gov/Publications/Report/5154

The 2026-27 Budget: California Competes Extension

Mar 18, 2026 - Placing a limit on how quickly the pool of recycled credits can be drawn down could smooth increased fiscal impacts over a longer period. Alternatively, the total size of the California Competes credit pool could be capped to place an upper limit on the fiscal impact of a full drawdown.
https://lao.ca.gov/Publications/Report/5162

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

Relating to attorney fees and medical damages in motor vehicle accident cases. [Ballot]

Nov 24, 2025 - For example, it is unclear how much the limits on attorney contingency fees and medical damages would reduce the number of cases that are filed in court and/or are settled quickly. Change in State Court Costs.
https://lao.ca.gov/BallotAnalysis/Initiative/2025-022

2022-23 Fiscal Outlook Revenue Estimates [EconTax Blog]

Nov 17, 2021 - Nevertheless, California taxable sales have followed roughly similar patterns to U.S. retail sales: plummeting in Spring 2020, recovering quickly in Summer 2020, and growing dramatically in the first half of 2021.
https://lao.ca.gov/LAOEconTax/Article/Detail/712

^[PDF] 2003-04: Overview of the Governor’s Budget

The Governor has proposed a com- prehensive plan for addressing the state’s fis- cal problems. The Legislature faces a formi- dable task in carefully evaluating the plan’s in- dividual elements and the many important policy issues it raises.
https://lao.ca.gov/2003/budget_overview/03-04_budget_overview.pdf