California Budget Challenge

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.  

For the last decade, California has spent more than it had coming in, and often used short-term solutions and borrowing to balance the budget. The 2017-18 budget does not have a large deficit to solve, but tough choices remain about the level of funding needed for state programs, whether to restore reductions to programs that have been made recently, and what changes to consider to make our revenue sources more stable in the future. The 2017-18 budget also continues emphasis on building up reserves and paying down state budgetary debt.

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