On May 14, 2020, Governor Gavin Newsom released the May Revision to his proposed 2020-21 state budget. Our state is facing unprecedented challenges as a result of the COVID-19 crisis – an estimated $54 billion state budget shortfall for the current (2019-20) and next (2020-21) fiscal years, a rapid increase in unemployment, and millions of Californians in need of assistance as they confront new challenges to paying rent, buying groceries, and covering the costs of basic needs. The health and economic hardships are especially striking for Black and Latinx Californians, women and children in low-income households, and undocumented Californians. This First Look report summarizes key provisions of the Governor’s May Revision.
Budget choices should reflect our collective values, priorities, and ideals. At the Budget Center we often pose the question: What kind of California do you want to live in? These decisions depend on budget deliberations and analyses that are fact-based and non-partisan — while also thinking about the people in our communities. The Budget Center works to make budget issues — and the state budget process itself — more accessible and easier to understand, so as to broaden participation in the debate and foster policies that work for all Californians, especially people with low and middle incomes, people of color, immigrants, women, and children.
New to the state budget process? Check out our latest First Look and A Guide to the State Budget Process.
This guide outlines the Governor’s proposed 2020-21 budget, including revenue forecasts, funding proposals, and key reforms. The Budget Center’s analysis also points to opportunities for additional investments to improve the lives of Californians still struggling to make ends meet. Plus, learn about tax expenditures – spending that happens outside of the budget that could provide additional revenue for policymakers to share the state’s prosperity if better targeted. Finally, our new publication highlights what happens next in the state budget process.
A Budget Center Analysis of Governor Newsom’s Proposed 2020-21 Budget: On January 10, Governor Gavin Newsom released his proposed 2020-21 budget that advances a series of commitments to some of the most pressing needs facing Californians: addressing homelessness and behavioral health, providing access to affordable health coverage, and improving paid family leave so that more workers can care for their family members. The Governor forecasts revenues that are $5.8 billion higher (over a three-year “budget window” from 2018-19 to 2020-21) than previously projected in the 2019-20 budget enacted in June, driven largely by continued economic growth.
A comprehensive guide to the California state budget process: we provide an overview of the year-round state budget cycle, detail the roles of the key players, and lay out the timeline for state budgeting as well as opportunities for input. Our hope is that this guide makes the state budget process more accessible for policy staff, advocates, and the media, as well as to broaden participation in the budget debate.
On June 27, Governor Gavin Newsom signed into law the 2019-20 state budget, an agreement with state legislative leaders that makes a series of investments in creating economic security and opportunities for Californians, while also fostering the state’s fiscal health.