California Budget Challenge

Budget Basics

Budget Facts

  • After adjusting for inflation, state spending per capita has declined 18 percent since 2006-07
  • The top 1 percent of income taxpayers in California paid just over 40 percent of total income taxes in 2010; tax increases passed in 2012 will raise rates for these high-income taxpayers
  • More than 60 percent of K-12 education funding is spent on direct instruction
  • More than half of the state budget is spent on education
  • More than 70 percent of state General Fund spending is for local programs, such as education and county-run health and human service programs
  • According to the Legislative Analyst, the three fastest growing state programs over the next five years are expected to be student aid, Medi-Cal and debt service on bonds
  • Personal Income taxes provide more than 60 percent of total General Fund revenues
  • In 2011 California, with 108 state employees per 10,000 population, had the fifth lowest number of state employees compared to other states. The national average was 140
  • Eliminating funding for the Legislature would save about $256 million, less than two-tenths of one percent of total General Fund spending
  • In 2009, California’s combined state and local tax burden per $100 of personal income was tenth highest among all 50 states
  • In FY 20019-10, federal spending in California was roughly three times the amount of state spending

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