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.