Development of California's Economic Recovery Budget

The California Constitution requires the Legislature to pass a budget by June 15 and the Governor to sign a balanced budget by July 1 of each year.

Final California Budget for 2020-21

In January 2020, California had a projected budget surplus.  The COVID-19 pandemic was estimated to result in the state having a $54 billion shortfall.

When the Legislature passed a budget on June 15, there were foundational disagreements between the approaches taken by the Governor and the Legislature.

The areas of disagreement included how to address potential federal funding, cuts to health services to seniors, cuts to state employee salaries, and the drawdown of financial reserves.  With the June 15 state constitutional requirement met, the Legislature and Budget negotiations continued.

On June 22, 2020, a final deal between the Legislature and the Governor was announced and a $202.1 billion ($133.9 billion General Fund) budget package was sent to the Governor on June 26, 2020.  The Assembly Jobs Committee prepared a presentation on the final budget agreement, including new programs and initiatives to address the economic impacts of the COVID-19 pandemic.

May Revision Budget for 2020-21

Governor Newsom's May Revision Budget recognizes the importance of small businesses by both retaining January funding priorities and adding to small business financial resources.  JEDE prepared a May Revision summary document highlighting key features impacting economic development and small businesses.

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