California’s Strong Revenue Trends Mask Looming Budget Risk

Jan 23, 2026 - These firms have invested heavily in building out data centers and on extraordinary pay packages for their key employees. This spending, along with gains to investors, has turbo-charged state income tax receipts.
https://lao.ca.gov/Publications/Report/5104

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

Oct 27, 2021 - CWDB = California Workforce Development Board; CDE = California Department of Education; COLA = cost ‑of ‑living adjustment; GF = General Fund; CDFA = California Department of Food and Agriculture; CDTFA = California Department of Tax and Fee Administration; CTC = Commission on Teacher Credentialing; DCC = Department of Cannabis Control; DFPI = Department of Financial Protection and Innovation;
https://lao.ca.gov/Publications/Report/4448/1

The 2022-23 California Spending Plan: Other Provisions

Sep 27, 2022 - Increased Weekly PFL and DI Benefits. Chapter  878 of 2022 (SB  951, Durazo) increases the weekly benefit amount for the state ’s PFL and DI programs to 70  percent of recent wages for most workers and to 90  percent of recent wages for lower-income workers.
https://lao.ca.gov/Publications/Report/4626

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 2022-23 Budget: Overview of the Spending Plan

Oct 12, 2022 - The budget package also reflects UC ’s continued implementation of its statutory nonresident replacement plan, with an additional 902 nonresident slots replaced with resident slots in 2023 ‑24. The budget package sets no 2023 ‑24  enrollment expectation for CSU.
https://lao.ca.gov/Publications/Report/4616

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

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 2023-24 Budget: Multiyear Assessment

Feb 15, 2023 - Three of those —the recession in the early 1990s, the dot ‑com bust in the early 2000s, and the Great Recession —resulted in large revenue shortfalls and ensuing multiyear deficits, even for some years after each recession ended.
https://lao.ca.gov/Publications/Report/4687