California Budget Challenge

Budget Basics

The Current Situation

On January 7th, 2016, the Governor introduced his proposed state budget for the 2016-17 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, 2016.

Unlike many budgets over the last decade, this year's budget is balanced and has a reserve, largely as a result of the additional revenues approved by the voters' passage of Proposition 30 on the November 2012 ballot and improving economic conditions. This year the focus of budget negotiations are expected to revolve around how much funding to restore to programs that were cut during the recession and how much should be spent to continue to pay down the state's debts.

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