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

Mar 9, 2026 - By most measures, the global financial crisis was more severe than the dot-com crash. The state 's unemployment rate, for example, peaked at 7 percent following the dot-com crash but reached nearly double that during the financial crisis and remained elevated for much longer.
https://lao.ca.gov/LAOEconTax/Article/Detail/852

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

Mar 9, 2026 - By most measures, the global financial crisis was more severe than the dot-com crash. The state 's unemployment rate, for example, peaked at 7 percent following the dot-com crash but reached nearly double that during the financial crisis and remained elevated for much longer.
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: 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

New Higher Education Reporting Requirements [EdBudget]

Nov 17, 2025 - TBL refers to trailer bill language contained in Chapter 9 of 2025 (AB 123, Committee on Budget) and Chapter 745 of 2025 (SB 148, Committee on Budget and Fiscal Review). b Campuses are to submit their turnaround plans to the CSU Chancellor's Office by December 31, 2025. c Reporting requirement is included in Chapter 755 of 2025 (SB 437, Weber Pierson). d Reflects due date for report from the CCC Chancellor's Office.
https://lao.ca.gov/Education/EdBudget/Details/1033

The 2025-26 California Spending Plan: Natural Resources and Environmental Protection

Oct 16, 2025 - Appropriations include $232  million for the Dam Safety and Climate Resilience Program, $148  million for Salton Sea projects, $123  million for the Flood Control Subventions Program, $63  million for State Plan of Flood Control projects, $30  million for groundwater management activities, and $8  million for improvement and management of stream gages.
https://lao.ca.gov/Publications/Report/5080

New Higher Education Reporting Requirements [EdBudget]

Jul 21, 2025 - TBL refers to trailer bill language contained in Chapter 9 of 2025 (AB 123, Committee on Budget). b Campuses are to submit their turnaround plans to the CSU Chancellor's Office by December 31, 2025. c Reporting requirement is included in SB 437 (Weber Pierson). d Reflects due date for report from the CCC Chancellor's Office.
https://lao.ca.gov/Education/EdBudget/Details/977

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

Fixing Unemployment Insurance

Dec 2, 2024 - During the phase ‑in period, the state also entered the dot ‑com recession. These two cost pressures absorbed the remaining flexibility in the state ’s UI tax system. As  shown in Figure  4 , the state began this period in Schedule C but quickly moved to Schedule F+, the highest tax schedule, where it has remained since.
https://lao.ca.gov/Publications/Report/4943