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May 8, 2020 - This report provides an update on the budget’s condition in light of the public health emergency and economic downturn associated with the coronavirus disease 2019. Our outlook presents two potential scenarios—a somewhat optimistic “U-shaped” recession and a somewhat pessimistic “L-shaped” recession—and assumes a baseline level of expenditures. Under these two scenarios, the state would have to address an $18 billion or $31 billion budget problem. The state’s newly emergent fiscal challenges are likely to extend well beyond the end of the public health crisis. Under both of our economic scenarios, budget deficits persist until at least 2023-24 with multiyear deficits summing to $64 billion in the U-shaped recession and $126 billion in the L-shaped recession.
May 6, 2020 - In this post, we discuss actions the judicial branch has taken to temporarily change operations due to the emergence of the coronavirus disease 2019 (COVID-19).
April 28, 2020 - This post summarizes recent federal legislative and other actions to allocate funding to California and other states in response to the coronavirus disease 2019 (COVID-19). Figures in this post summarize—as comprehensively as was feasible—the amount of funding that we expect to flow to governments and other public entities in California from the federal government. We also describe the major COVID-19-related federal funding that we expect to flow directly to private Californian entities, such as individuals and businesses.
April 28, 2020 - This post describes the major higher education provisions of the federal Coronavirus Aid, Relief, and Economic Security Act. It also highlights some key issues for the Legislature to consider relating to its upcoming budget and oversight decisions.
April 26, 2020 - Presented to: Assembly Budget Subcommittee No. 2 on Education Finance Hon. Kevin McCarty, Chair
April 20, 2020 - This post summarizes recent legislative and administrative action to allocate state funds to respond to the coronavirus disease 2019 (COVID-19) public health emergency. These activities are ongoing. We plan to update this post periodically to reflect new information and actions.
April 16, 2020 - Presented to: Senate Budget and Fiscal Review Committee
April 16, 2020 - This post summarizes key COVID-19 federal actions that affect aging- and disability-related state programs.
April 15, 2020 - This post summarizes the CARES Act funding provided to California transit agencies and discusses the impact of COVID-19 on transit.
April 9, 2020 - The COVID-19 outbreak has pushed state unemployment to record highs. Alongside recent federal actions, the state may want to explore options to expand assistance to unemployed workers. Expanding assistance to unemployed workers could mitigate financial hardship for unemployed workers and, in some cases, provide statewide economic stimulus. In this post, we describe four options to expand unemployment benefits: (1) change state formulas to increase underlying benefit levels, (2) add state dollars on top of the federal $600 weekly add-on, (3) build a state-funded UI program for workers who currently are not eligible for benefits, and (4) temporarily allow ineligible workers to access State Disability Insurance benefits.
April 8, 2020 - In this post, we discuss the assistance the federal government is providing California to support its COVID-19 response efforts through the National Guard.
April 5, 2020 - In recent weeks Congress has passed legislation that has directed funding to respond to the coronavirus emergency. This post discusses how some of the major pieces of funding could affect the state budget’s overall condition. In particular, we focus on how funding could help the state address some of the sources of a budget problem that could emerge as a result of the coronavirus emergency.
April 5, 2020 - As the public health crisis related to COVID-19 has unfolded, the possibility of the state facing a budget problem seems increasingly likely. One key tool to address a budget problem is budget reserves. This post assesses the current reserve situation of the state and school districts—whose funding largely depends on the state.
April 3, 2020 - This post in our COVID-19 series on federal actions affecting California summarizes federal financial assistance provided to businesses.
April 3, 2020 - This post summarizes the broad-based cash assistance provided under the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act. We briefly describe the historical and policy context for this assistance and discuss its likely impact on Californians.