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January California Legislative Update

The January California Legislative Update provides an overview of Gov. Newsom’s recently released budget proposal.

Governor Gavin Newsom introduced his $227 billion 2021-22 Budget Proposal on Friday with fairly positive news. Although California’s revenues have experienced a moderate slowdown, thus far it has impacted the State’s revenues far less than anticipated by the 2020-21 Budget Act. The difference in projections is the result of a less severe economic downturn than expected wage losses in
large part impacting low-wage earners, and a stronger stock market than projected.

The Budget Proposal contains $34 billion in Reserves and Surplus
● $15.6 billion in the Proposition 2 Budget Stabilization Account (Rainy Day Fund)
● $450 million in the Safety Net Reserve
● $3 billion in the Public School System Stabilization Account
● $2.9 billion in the State’s operating reserve

Our full analysis will provide your jurisdiction the information needed to plan for the year.

Read the full January California Legislative Update Here.

Avenu Podcast Series Launched

Local Government Insights is now available on Apple, Spotify, Stitcher, and Google Podcasts.