California Budget ChallengeAbout Next 10Budget Overview

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 many years, California had spent more than it had coming in, and often used short-term solutions and borrowing to balance the budget. The 2018-19 Governor’s May Revise has a fairly large surplus, 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 making our revenue sources more stable in the future. The 2018-19 budget also continues to emphasize building up reserves and maintaining fiscal health in the face of federal uncertainty and a potential recession.

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