Following large surpluses in 2021 and 2022, California has faced budget deficits and there would be a baseline deficit of $14.3 billion in 2025-26. This exercise allows you to decide which policy proposals should be adopted to balance the budget.
How can the state maintain a balanced budget without drastic cuts to important programs? Do taxes need to be raised to maintain funding for key programs?
A nonpartisan budget simulation in which users select spending and revenue options in order to create their own versions of the state budget and learn about the trade-offs lawmakers are faced with when crafting the budget.
On January 10, 2025, the Governor his proposed 2025-26 budget and the revised budget will come out in May. The Governor and Legislature must agree on the budget by June 15, 2025 ahead of the start of the fiscal year on July 1, 2025.
Users are presented with spending options first, followed by revenue and reserve options. Choose the option you think is best and see how it impacts the starting surplus or deficit. The goal is to finish the Budget Challenge with either a balanced budget or surplus, and additional background information is available for each category.
