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Highlights of the 2018-19 Budget

Governor Brown Signs Final State Budget with Record Rainy Day Fund, School Funding
  • July 10, 2018
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Saving for Uncertain Times

The state’s Rainy Day Fund, established by a vote of the people in 2014, saves money when the economy is strong for uncertain times ahead. By the end of 2018-19, the current economic expansion will have matched the longest in post-war history. The budget fully fills the fund, growing the balance to an unprecedented $13.8 billion.

Supporting our Schools 
The budget increases funding by more than $4,600 per student over 2011-12 levels and directs $78.4 billion in funding to K-14 schools – a 66 percent increase in annual funding from seven years ago. Additionally, the state will fully implement the Local Control Funding Formula, correcting historical inequities in school district funding.

Counteracting the Effects of Poverty and Combatting Homelessness

The budget invests $5 billion to help address challenges with affordable housing and homelessness, including providing $500 million to assist local governments in their immediate efforts to help homeless Californians. The state also continues to provide billions of dollars to: raise the state’s minimum wage; grow the state’s Earned Income Tax Credit program; expand health care coverage to millions more Californians; restore low-income health benefits eliminated during the recession; boost CalWORKs grants; and increase child care and early education provider rates and the number of children served.

Strengthening Infrastructure

This budget delivers the first full year of funding under Senate Bill 1 – the state’s Road Repair and Accountability Act – with $4.6 billion in new transportation funding in 2018-19. The funding will repair neighborhood roads, state highways and bridges, fill potholes, ease congestion in busy trade and commute corridors and improve and modernize passenger rail and public transit.

Investing in Higher Education

The budget continues to increase funding for the state’s university and community colleges systems with no tuition or fees hikes and establishes the state’s first-ever online community college.  Since 2012, the University of California has received $1.2 billion in new funding, with $1.7 billion for the California State University and $2.4 billion for community colleges over the same period.

Combating Climate Change

The budget includes a $1.4 billion Cap and Trade Expenditure Plan to invest in programs that further reduce carbon pollution and support climate resiliency efforts, including $210 million for forest improvement and fire prevention projects that protect the state’s forests from wildfires and $334.5 million for the California Energy Commission and the California Air Resources Board to begin the implementation of a multi-year initiative to accelerate sales of zero-emission vehicles through vehicle rebates and infrastructure investments.

Protecting Hardworking Immigrants

The budget provides $79 million to support hardworking immigrants through a number of legal services programs, including deportation defense, naturalization services and DACA assistance.

The governor also signed 26 trailer bills – these are bills that implement the language of the state budget. There are numerous trailer bills that remain to be signed.



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