Governor Newsom signed the 2020-21 state budget on June 29, 2020. The $202 billion budget includes $133.9 billion in general fund expenditures, down from $146.9 billion last year. There are $14 billion in cuts and deferrals that will be “triggered off” if California receives additional funding from the federal government by October 15. The budget uses $7.8 billion from the state’s Rainy Day fund, approximately half of the balance of that reserve fund.
Public education was spared from the deepest cuts, which the governor proposed in the May Revision, and the budget includes critical protections against layoffs for many school employees. This budget remains vulnerable to further changes, in late July or early August. With this year’s tax filing deadline extended to July 15, we anticipate adjustments to the 2020-21 budget.