California Budget Challenge

Budget Basics

The Current Situation

On January 10th, 2017, the Governor introduced his proposed state budget for the 2017-18 fiscal year. This proposal will be discussed over the next few months and a state budget will be signed by lawmakers on June 15 that will go into effect July 1, 2017.

Unlike the last few budgets, this year's budget has a small deficit due to larger than anticipated Medi-Cal costs and a projected revenue that is below expectations. This year the focus of budget negotiations are expected to revolve around how much funding to support our state's most valuable programs and how much should be spent to continue to pay down the state's debts. Various key public services and supports still operating at severely diminished levels due to state cuts made during and after the Great Recession. Uncertainty at the federal level could also impact California's budget outlook, particularly in the area of healthcare and Medi-Cal. 

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