California Budget ChallengeAbout Next 10Budget Overview

Budget Basics

The Current Situation

On January 10, 2019, the Governor introduced his proposed state budget for the 2019-20 fiscal year. This proposal will be discussed over the next six months and a state budget will be signed by lawmakers on June 15 that will go into effect July 1, 2018. As the status quo and absent any adjustments, the 2019-20 budget has a very large surplus of $22.8 billion to due higher-than-expected revenues and continued economic growth.

This year the focus of budget negotiations are expected to revolve around how much funding to support our state's most valuable programs, and how much should be spent to continue to pay down the state's debts and protect against a future downturn. Various key public services and supports are still operating at diminished levels due to state cuts made during and after the Great Recession. Uncertainty at the federal level could also impact California's budget outlook, particularly in the area of healthcare and social safety net programs. 

More information on the current situation in California can be found in the LAO's CalFacts 2018

More information about the final enacted budget for fiscal year 2018-19 that began on July 1, 2018

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