California Budget ChallengeAbout Next 10Budget Overview

Budget Basics

The Current Situation

On January 10, 2019, the Governor introduced his proposed state budget for the 2019-20 fiscal year, and the updated May Revise on May 9, 2019. A state budget will be signed by lawmakers by June 15th that will go into effect July 1, 2019. As the status quo and absent any adjustments, the 2019-20 budget has a very large surplus of $22.4 billion to due higher-than-expected revenues and continued economic growth. The 2019-20 enacted state budget can be found here.

This year, 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 and protect against a future downturn. Various key public services and supports are still operating at 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 social safety net programs. 

More information on the current situation in California can be found in the LAO's CalFacts 2018

More information on the 2019-20 May Revise to the Governor's budget can be found here.

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