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 2024-25 Budget: Overview of the Spending Plan

Sep 6, 2024 - These slots will have full ‑year costs of $305  million beginning in 2025 ‑26. The  budget also modifies and adds into statute details related to the multiyear slot expansion plan. (In 2021 ‑22, the Legislature and Governor agreed to add 206,500 child care slots by 2025 ‑26.
https://lao.ca.gov/Publications/Report/4922

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

The 2022-23 Budget: Overview of the Spending Plan

Oct 12, 2022 - When the minimum funding requirement is growing quickly, the Constitution requires the state to deposit some of the available funding into a statewide reserve account for schools and community colleges.
https://lao.ca.gov/Publications/Report/4616

Rethinking California's Reserve Policy

Apr 10, 2025 - Revenues Are Volatile … From year to year, state revenues can grow very quickly or contract quickly. Revenues drop during economic recessions, when business activity slows, unemployment rises, and consumer spending declines, leading to lower tax collections.
https://lao.ca.gov/Publications/Report/5028

The 2024-25 Budget: Initial Comments on the Governor’s May Revision

May 17, 2024 - This includes, for example, $1.6  billion in spending delays for competitive transit grant funds, a sweep of nearly $600  million in unawarded General Child Care slots, and a change in the distribution of funds in the school facilities program that delays nearly $700  million in spending until after 2024-25.
https://lao.ca.gov/Publications/Report/4902

The 2021-22 Budget: Overview of the Spending Plan (Final Version)

Oct 27, 2021 - Human Services: Discretionary Spending Proposals in the 2021 ‑22 Budget Package General Fund (In Millions) Expand APS to older adults aged 60 and over and enhance services — Fund county costs associated with CalFresh simplifcations — Augment CFAP monthly benefits to their maximum per household size $24 Expand CFAP benefits to some previously ineligible immigrants — Augment CFAP benefits by 15
https://lao.ca.gov/Publications/Report/4448/1

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 2021-22 Budget: Overview of the Spending Plan (Final Version)

Oct 27, 2021 - When the minimum funding requirement is growing quickly, the Constitution requires the state to deposit some of the available funding into a statewide reserve account for schools and community colleges.
https://lao.ca.gov/Publications/Report/4448

The 2024-25 Budget: Proposition 2 Debt Payment Proposals

Mar 20, 2024 - In general, the requirements tend to increase when revenues are growing more quickly and decline when revenue growth is lower. Unlike reserve deposits, which can be suspended in response to a budget emergency, Proposition  2 ‑related debt payments are required every year until 2029 ‑30.
https://lao.ca.gov/Publications/Report/4887