California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - We have noted how following the dot-com bust and 2001 recession, California relied mostly on short-term solutions rather than realigning its structural imbalance. Consequently, the state went into the Great Recession a few years later with a structural deficit (and virtually no budget reserves), which greatly exacerbated the severity of the fiscal crisis that ensued.
https://lao.ca.gov/Publications/Report/5104

The 2018-19 Budget: California Spending Plan (Final Version)

Oct 2, 2018 - Black Infant Health Program. $ 8  m illion ongoing General Fund to expand the Black Infant Health Program, which seeks to reduce black ‑white disparities in infant and maternal health, by providing funding to 15 c ounties to establish local grant programs.
https://lao.ca.gov/Publications/Report/3870/6

The 2017-18 Budget: California Spending Plan

Oct 18, 2017 - The line item reflects less than half of UCOP ’s total budget, which is comprised of numerous other restricted and unrestricted revenue sources. Accounting for all funding, the budget for UCOP ’s administration and systemwide programs is $798  million in 2017 ‑18.
https://lao.ca.gov/Publications/Report/3694/5

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

Managing California’s Cash

Sep 3, 2019 - After a period of relative calm in the mid ‑ and late ‑1990s, California faced another series of years with acute budget problems following the dot ‑com bust and ensuing recession. Although the dot ‑com bust was relatively mild in economic terms, it hit the California budget —which is particularly reliant on the Bay Area ’s technology sector —especially hard.
https://lao.ca.gov/Publications/Report/4092

The 2020-21 Budget: Overview of the California Spending Plan (Final Version)

Oct 5, 2020 - As a condition of receiving the funding, counties must show that they are in com pliance with state and federal public health requirements. Budget Provides $600   Million for Project Homekey and Related Services.
https://lao.ca.gov/Publications/Report/4263

An Update on California’s Cash Management Situation

Aug 31, 2020 - SCO is led by the State Controller, who has broad constitutional and statutory powers to use a variety of techniques to address cash flow deficits. For example, the Controller borrows from internal sources, namely state funds other than the General Fund.
https://lao.ca.gov/Publications/Report/4266

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

The 2018-19 Budget: California Spending Plan (Final Version)

Oct 2, 2018 - California currently has a waiver from this requirement t hat is set to expire October 2018. Funds Other Quality Improvement Activities. The budget provides $ 26  m illion one ‑time federal funds for various quality improvement initiatives: $ 10  m illion for a three ‑year pilot program focused on including children with exceptional needs in mainstream early education settings. $
https://lao.ca.gov/Publications/Report/3870/4

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