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 state has a budget surplus of over $20 billion in 2019-20—tough choices remain, including the level of funding needed for state programs and what changes might be needed to make 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.