California Budget ChallengeAbout Next 10Budget Overview

Budget Basics

The Budget Overview

Each year the Governor and Legislature work together to pass the state’s annual budget that determines how our taxes will be spent on state-funded programs like education, healthcare, and human services. The Governor's proposed budget for 2019-20 was released on January 10th and the deadline to pass the budget is June 15th. The 2019-20 fiscal year will start on July 1, 2019 and end June 30, 2020. 

For many years, California had spent more than it had coming in, and often used short-term solutions and borrowing to balance the budget. The forecasted 2019-20 budget has a very large surplus of an estimated $14.8 billion in discretionary funds, but tough choices remain about the level of funding needed for state programs, whether to restore reductions to programs that were made during the Great Recession, and what changes to consider making our revenue sources more stable in the future. The 2019-20 budget also continues to emphasize building up reserves, paying down unfunded liabilities, and maintaining fiscal health in the face of federal uncertainty and a potential recession.

More information on the process by which policymakers craft California’s state spending plan can be found from the California Budget & Policy Center here.

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