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

MOU Fiscal Analysis: Bargaining Unit 5 (Highway Patrol)

Aug 23, 2024 - The administration ’s estimates assume that 123 rank-and-file employees would receive this payment and 19 excluded employees would receive the payment —increasing annual state costs by about $1.8  million.
https://lao.ca.gov/Publications/Report/4920

The 2024-25 Budget: State Preschool

Apr 16, 2024 - The Governor ’s budget proposes reducing Proposition  98 funding for State Preschool by $446  million and non-Proposition  98 General Fund by $123  million. The administration indicates these reductions would be made on a one-time basis in 2024 ‑25 to reflect its estimate of State Preschool funds that would otherwise go unused.
https://lao.ca.gov/Publications/Report/4894

The 2024-25 Budget: In-Home Supportive Services

Feb 29, 2024 - The average number of service hours that will be provided to an estimated 691,075 IHSS recipients is projected to be 123 hours per month in 2024-25. IHSS Costs Split Between Federal Government, State, and Counties.
https://lao.ca.gov/Publications/Report/4868

The 2024-25 Budget: California State University

Feb 15, 2024 - In 2023 ‑24, CSU allocated $123  million (slightly more than half) of its General Fund base increase for employee compensation increases. This reflects the amount of the base increase that remained available after covering certain other costs (health care premium increases, insurance premium increases, maintenance and operations of new facilities, and enrollment growth).
https://lao.ca.gov/Publications/Report/4842

The 2023-24 California Spending Plan: Other Provisions

Nov 8, 2023 - Specifically, it includes a 65  percent year-to-year drop in federal fund support (from $81  million to $28  million) due to the expiration of limited-term funding, which is more than offset by a 146  percent increase in General Fund support (from $50  million to $123  million).
https://lao.ca.gov/Publications/Report/4814

The 2023-24 Budget: May Revenue Outlook [EconTax Blog]

May 13, 2023 - In the last 30 years, comparable two-quarter declines have occurred only around the Dot-Com Recession and the Great Recession. Similarly, income tax withholding (the largest component of income tax collections) has declined 5 percent so far this year, a stark departure from the double digit growth of the preceding two years.
https://lao.ca.gov/LAOEconTax/article/Detail/774

The 2023-24 Budget: May Revenue Outlook [EconTax Blog]

May 13, 2023 - In the last 30 years, comparable two-quarter declines have occurred only around the Dot-Com Recession and the Great Recession. Similarly, income tax withholding (the largest component of income tax collections) has declined 5 percent so far this year, a stark departure from the double digit growth of the preceding two years.
https://lao.ca.gov/LAOEconTax/Article/Detail/774

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