Governor Gavin Newsom unveiled his 2019-20 State budget May Revision today, declaring that the proposal "protects the hard-won recovery and is centered on making necessary investments for a more effective government, promoting affordability and opportunity, and supporting justice and dignity for all Californians."
The May Revision estimates a total budget of $213.5 billion, up from the previous $209 billion estimate, with $147 billion general fund spending (up from $144 billion). The proposal allocates $15 billion to building budgetary resiliency and paying down the state's unfunded liabilities—$1.4 billion higher than proposed in January. This includes $4.5 billion to eliminate debts and reverse deferrals, $5.7 billion to build reserves, and $4.8 billion to pay down unfunded retirement liabilities. An additional $1.2 billion deposit into the Rainy Day Fund brings the reserve to $16.5 billion in 2019-20. The Rainy Day Fund is now expected to reach its constitutional cap of 10 percent of General Fund Revenues in 2020-21—two years earlier than predicted in January.
The May Revision also includes $31.3 million General Fund to backfill wildfire-related property tax revenue loss for cities, counties, and special districts as well as funding to waive the local share of debris removal costs.
You can find a summary of the Governor's May Revise budget proposal at
www.ebudget.ca.gov.