This online post is our office’s multiyear outlook for California’s General Fund through 2019-20 based on current state law and policies, as modified by the Governor’s May Revision proposals. This is part of our response to the Governor’s 2016-17 May Revision. Our outlook estimates the state will end 2016-17 with $8.7 billion in total reserves. Over our outlook period, and assuming continued economic growth, we estimate the state’s budget has the capacity to pay for the Governor’s May Revision proposals over the period. After 2016-17, the state would have a few billion dollars available each year to build reserves or make additional commitments. Despite these budgetary surpluses, compared to other recent similar analyses, our outlook shows much smaller budget surpluses. Surpluses have declined largely as a result of new spending commitments by the state, including the increased state minimum wage. As a result, the state’s budget is now more vulnerable to a future economic downturn than it was last year. For this reason, we suggest the Legislature aim to pass a state budget with a robust level of total reserves this year.