Governor Newsom released the May Revision to the 2020-21 state budget on May 14. California began 2020 with a solid fiscal foundation. As the proposal notes, the state started the year with a “strong and diverse economy, historic reserves, and a structurally balanced budget.
The state had eliminated past budgetary debts and deferrals and was making extraordinary payments to reduce pension liabilities. In January, a budget surplus of $5.6 billion was projected for the 2020-21 fiscal year. Revenues through March were running $1.35 billion above projections.