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Just like households save for emergencies, California sets aside money in budget reserves. Budget reserves are California’s way of preparing for the unexpected, saving a little today to protect vital public services tomorrow.
In this video, we break down how California’s state reserves work, including the four main reserve accounts: the Budget Stabilization Account (the state’s “rainy day fund”), the Public School System Stabilization Account, the Safety Net Reserve, and the Special Fund for Economic Uncertainties.
Learn how these reserves are funded, when they can be used, and why balancing savings with current investments is key to supporting Californians’ well-being.
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