You can see the budget news conference at:
https://twitter.com/CAgovernor/status/1215702508590354433
or:
https://www.pscp.tv/w/1gqGvgQmBVjJB
In any event, the overall budget outlook is summarized in the table below. As a result of the Brown period, there is now a proliferation of reserves associated with the general fund. You have to add all of them up to look at the overall level. The change in reserves in total is a measure of the surplus or deficit of the general fund. The current budget (for 2019-20) is, by the governor's estimates, running a deficit of about a billion dollars. The proposed budget would run a surplus of about half a billion. Total reserves are about 15% of spending. If there were to be an economic downturn, the state would have about a year or so to adjust. Undoubtedly, that adjustment, as has occurred in the past, would especially hit elements of the budget that are more discretionary than others. UC, in part because it has the tuition mechanism, would likely be hit.
Below is a summary table:
General Fund (GF)
Budget ($ Millions)
2019-20 2020-21
------------------------------------------------
GF Beginning Reserve $8,477
5,234
GF Revenue &
transfers 146,486 151,635
GF Expenditures 149,749 153,083
GF
Surplus/Deficit -3,263 -1,448
GF Ending Reserve 5,234 3,786
------------------------------------------------
Public School
Stabilization Account (PSSA)
Beginning 0 524
Ending 524 487
Surplus/Deficit +524 -37
------------------------------------------------
Safety Net
Reserve (SNR)
Beginning 900 900
Ending 900 900
Surplus/Deficit 0 0
------------------------------------------------
Budget Stabilization
Account (BSA)
Beginning 14,358*
16,018
Ending 16,018 17,977
Surplus/Deficit +1,660 +1,959
------------------------------------------------
Total Reserves
(GF+PSSA+SNR+BSA)
Beginning 23,755 22,676
Ending
22,676 23,150
Surplus/Deficit -1,079 +474
------------------------------------------------
Ending Reserves as a
Percent of Expenditures
15.1% 15.1%
------------------------------------------------
Source: http://www.ebudget.ca.gov/FullBudgetSummary.pdf (p.18)
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