Governor Newsom signs 2024 state budget supporting fiscal stability and core programs | Governor of California (2024)

FAQs

What is the budget for the California Governor in 2024? ›

The budget spends $297.9 billion in total state funds, consisting of approximately $211.5 billion from the General Fund, $84 billion from special funds, and $2.4 billion from bond funds.

State leaders closed a roughly $47 billion General Fund shortfall across the three-year “budget window” (fiscal years 2022-23 through 2024-25) using a broad array of budget tools. The “solutions” in the 2024-25 budget package include: $16 billion in spending reductions.

State Faces a $68 Billion Deficit. Under current law and policy, we estimate the state faces a budget problem of $68 billion.

For the first time in California history, the Governor and Legislature passed a two-year budget that balances the state finances and sets the state up for a more stable economic future — prioritizing what Californians care most about.

Today the legislature passed a budget bill for Fiscal Year 2024. The $56.26 billion budget now goes to Governor Healey.

The Finance Minister informed that for the year 2024-25, the total receipts other than borrowings and the total expenditure are estimated at ₹32.07 lakh crore and ₹48.21 lakh crore respectively. The net tax receipts are estimated at ₹25.83 lakh crore and the fiscal deficit is estimated at 4.9 per cent of GDP.

California's budget went from an assumed $98 billion surplus, in which there was so much cash in state coffers that Gov. Gavin Newsom was giving away $50,000 to randomly selected individuals to get a COVID-19 vaccine, to a projected $73 billion deficit in only about two years.

Governor Gavin Newsom signed the state's fiscal 2025 budget into law on June 29. The budget provides for total state expenditures (excluding federal funds) of $297.9 billion for fiscal 2025. This includes $211.5 billion in general fund spending, a 5.2 percent decline from fiscal 2024.

The budget deal proposes legislation, to be taken up in August, that will require the state to set aside a portion of future projected surpluses so that it cannot be spent until the money is collected. It also suggests putting a constitutional amendment before voters in 2026 to grow California's main reserve account.

Includes debt and unfunded pension and OPEB liabilities

The lowest-liability states—Arizona, Idaho, Nebraska, Tennessee, Utah, Wisconsin, and Wyoming—owe less than 3 percent of GDP. The highest-liability states—Connecticut, Hawaii, Illinois, New Jersey, and Vermont—owe more than 20 percent of GDP.

How financially stable is California? ›

California Faces a $68 Billion Deficit. Largely as a result of a severe revenue decline in 2022‑23, the state faces a serious budget deficit. Specifically, under the state's current law and policy, we estimate the Legislature will need to solve a budget problem of $68 billion in the upcoming budget process.

U.S. state and local government outstanding debt 2021, by state. In 2021, the federal state of California had about 541.24 billion U.S. dollars of debt outstanding, the most out of any state. New York, Texas, Illinois, and Florida rounded out the top five states with the most debt outstanding in 2021.

Most state support for education, health and human services, and state prisons comes from the General Fund. Special Funds — Over 500 state special funds account for taxes, fees, and licenses that are designated for a specific purpose.

The main reason for the budget problem is that state revenue collections have been coming in much lower than previously projected, and forecasts for future revenues have also been adjusted downward as a result.

In fact, a substantial share of total net federal tax revenues comes from California — more than $378 billion in federal fiscal year 2016, according to analysis by the California Budget & Policy Center. Collectively, California taxpayers contribute $1 in every $8 in total net federal tax revenues (see chart below).

On June 29^th 2024, Governor Newsom and the California Legislature reached an agreement on the Budget Act of 2024. [i] The Budget Act aims to address the budget deficit of $46.8 billion and includes total expenditures of $297.9. billion in 2024-25, with $211.5 billion from the General Fund (GF).

The Governor's budget includes $69 million to cover a 0.76 percent COLA for apportionments. This is the same COLA rate the Governor proposes for the K‑12 LCFF. The Governor's budget also includes a 0.76 percent COLA for seven CCC categorical programs, at a total cost of $9 million.

BUDGET SUMMARY

The proposed budget for the California Department of Transportation (Caltrans) is approximately $17.5 billion, a decrease of over $3 billion (15 percent) from the current 2023-24 enacted budget.

The newly proposed reductions include (1) an ongoing reduction of $47 million in CalWORKs home visiting funding beginning in 2024-25 (leaving the home visiting program with about $63 million total funds in 2024-25 and ongoing); (2) a $272 million one-time, budget-year reduction in single allocation employment services ...