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It’s been several weeks since Governor Gavin Newsom released his proposed 2020-21 budget, and now Senate and Assembly budget subcommittees start their work on the state’s upcoming fiscal plan, including holding public hearings and reviewing proposals to determine how money will be spent on programs and Californians.

This guide outlines the Governor’s proposed 2020-21 budget, including revenue forecasts, funding proposals, and key reforms. The Budget Center’s analysis also points to opportunities for additional investments to improve the lives of Californians still struggling to make ends meet. Plus, learn about tax expenditures – spending that happens outside of the budget that could provide additional revenue for policymakers to share the state’s prosperity if better targeted. Finally, our new publication highlights what happens next in the state budget process.

Table of Contents

The Governor’s Proposed 2020-21 Budget: Top Lines     4

The Big Picture: Revenues, Spending, and Reserves     6

Key Elements of the Governor’s Proposed Budget     11

Critical State Investments Left Out of the Governor’s Proposed Budget     47

Spending Outside of the Budget: Tax Expenditures     55

What Happens Next?     58

View the chartbook

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