About Next 10

About Next 10

Next 10 | April 2019 California Budget Challenge

Budget Year 2019-20 About Next 10

Independent, nonpartisan nonprofit founded in 2003 Commissions expert research to educate, engage, and empower Californians

Focus areas: green economy, budget, quality of life & governance View reports online at www.next10.org Take the full California Budget Challenge at www.budgetchallenge.org

www.next10.org What is the California Budget

Challenge? Next 10 created the California Budget Challenge in 2005 in an effort to educate and engage Californians on the state budget process.

During the Great Recession, the Challenge focused on making cuts to programs. The current Challenge is more focused on spending priorities as the economy and budget outlook has recovered.

The Challenge presentation starts with the option to add to the budget reserve, followed by spending and revenue questions that will impact the starting surplus of $22.8 billion.

www.next10.org | April 2019

2019-20 Budget Priorities in California Early Childhood Education

o Several proposals to increase funding for subsidized child care, state preschool, and full-day kindergarten

Housing o New funding to local governments to fight homelessness, and proposals increase housing production and affordability

Anti-poverty measures o Expanding California Earned Income Tax Credit (CalEITC) and a new child tax credit,

increasing CalWORKs grants, and measures to make healthcare more accessible and affordable

Uncertainty o Governors proposed budget prioritizes saving and paying down debts during these good economic times to guard against a potential downturn and/or federal uncertainty

www.next10.org 2019 California Budget Challenge

The 2019-20 budget is in a surplus* due to: o Revenue that is higher than expected o Continued economic growth

The Challenge: How much of the surplus should we spend on programs and how much should we save for the future?

Do we need to increase or decrease taxes to pay for more programs? www.next10.org

$162.1 Billion General Fund Budget

www.next10.org

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