Dollars and Democracy: An Introduction to the State Budget Process

key takeaway Proposition 2 on the November 2026 ballot would change the rules for California’s rainy day fund to build a larger reserve and better protect core public services during budget emergencies, such as an economic downturn. Prop. 2 also would expand the types of state debt that could be repaid with General Fund revenues … Continued

Stronger-than-expected revenues do not solve all of the state’s challenges. The 2026–27 budget is Governor Newsom’s last opportunity to fully respond to the harmful federal cuts enacted through H.R. 1.