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

The 2026-27 Budget: Child Care and State Preschool

Mar 19, 2026 - As part of the 2021‑22 budget package, the Legislature and Governor agreed to add 206,800 non‑CalWORKs child care slots over a multiyear period. To date, the state has funded 129,800 additional slots—a 113.8 percent increase in non‑CalWORKs slots compared to 2020‑21 levels.
https://lao.ca.gov/Publications/Report/5168

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

Addressing Chronic Vacancies in Prison Mental Health Care

Feb 23, 2026 - In addition, the Receiver ’s plan would also increase the pool of people that can provide services to the mental health population by expanding clinical internship slots across the prisons. Not only will interns perform work while part of the program, but it is also possible that they will become employed permanently by CDCR.
https://lao.ca.gov/Publications/Report/5134

The 2026-27 Budget: Office of Emergency Services Next Generation 911 System

Feb 27, 2026 - The additional amount that would be needed depends on many different variables, including: (1)  the extent to which the state is able to incorporate the existing Next Generation 911  components deployed under the regional approach, (2)  how quickly it can decommission the legacy 911 system, (3)  the cost of the interim contract and solutions, and (4)  the time (and cost) of building out and deploying the new statewide  system.
https://lao.ca.gov/Publications/Report/5145

The Bay-Delta Plan and Voluntary Agreements: Ensuring Effective Legislative Oversight

Mar 18, 2026 - Moreover, VAs are more flexible than traditional regulations (allowing adaptation in closer to real time), have fewer adverse impacts on water users, provide more certainty to water agencies, and could be implemented more quickly.
https://lao.ca.gov/Publications/Report/5163