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Budget Process Final copy

Budget Process Final copy

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kevin wabwile
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4 views

Budget Process Final copy

Budget Process Final copy

Uploaded by

kevin wabwile
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Budget Process

Your name

Institution

Course

Instructor’s name

Date
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Introduction

My topic for this project is going to be the state government of California, specifically the

procedure that they use to create their budget. The process of developing California's state

budget is a difficult one that requires participation from a wide variety of stakeholders and

substantial advance preparation. The procedure for developing the budget for the state of

California is controlled by a number of legislative and legal authorities, such as the California

Constitution and state legislation.

Timeline

The process of creating the budget for the state of California starts each year in January

when the Governor makes public his or her proposed budget. The proposed budget is then

examined and revised by the Legislature, with the ultimate objective being the adoption of a

budget no later than the 15th of June of each year (California State Senate, n.d.). The deadline

for the Governor to sign the budget into law is the 30th of June. If a spending plan is not

approved by the deadline, members of Congress will not be compensated for their work.

Legislative and Legal Authorities

The procedure for developing the budget for the state of California is controlled by a

number of legislative and legal authorities, the most important of which are the California

Constitution, state statutes, and state regulations. The Constitution of the State of California

stipulates that the Governor of California must provide the Legislature with a proposed state

budget (Legislative Analyst's Office, n.d.). This budget must then be examined by the Joint

Legislative Budget Committee. After then, the Legislature will hold public hearings, during

which it will evaluate the proposed budget and make any necessary adjustments.
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Sources of Revenue and Expenditures

Revenue for the state of California comes from a wide variety of sources, including taxes,

fees, and payments from the federal government. Taxes on individuals' earnings, retail sales, and

businesses' profits make up the state's three primary avenues of financial support (California

State Association of Counties, n.d.). The federal government provides financial support to the

state for a variety of programs, including Medicaid and transportation, which are run by the state.

The costs incurred by the state of California may be broken down into a number of subheadings,

the most prominent of which are education, health and human services, public safety, and

transportation. Around forty percent of the state's overall budget goes toward funding

educational programs and services, making this the biggest spending item for the state.

Capital Appropriations and Debt

The state of California carries a large amount of debt, which may be broken down into

three categories: revenue bonds, lease-revenue bonds, and general obligation bonds. In addition,

the state is now working on a number of construction projects, such as the high-speed rail and the

California WaterFix (California State Senate, n.d.). These initiatives are made possible thanks to

a contribution from both the state and the federal governments.

Additional Observations

The creation of a budget in California is a complicated process that includes collaboration

between the Governor and members of the State Legislature. It also involves various tiers of

government. Concerns have been raised concerning the state's capacity to maintain a stable

financial footing in light of the fact that the state carries a large amount of debt. In recent years,

the state has made efforts to manage its debt, including adopting a ballot proposal that boosted
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taxes on high-income workers and utilizing the extra money to pay down debt. One of these

steps was to increase the sales tax on tobacco products.

Is the Budget Balanced?

A balanced budget is required by the Constitution of California, which means that the

state cannot spend more money than it brings in per year (California State Senate, n.d.).

Although California has had problems in the past with budget deficits, the state's recent budgets

have been balanced, and the state has even built up a rainy-day fund to prepare for future

economic downturns. Despite California's history of budget deficits, the state's recent budgets

have been balanced.

Summary

The process of developing the budget for the state of California is a complicated one that

requires input from a wide variety of stakeholders and much advanced preparation. The

procedure for creating the state's annual spending plan is subject to regulation by a number of

legislative and legal bodies, including the California Constitution and state statutes. The state

spends a substantial amount of money on a variety of areas, including public education, health,

and human services, public safety, and transportation. The state receives income from a variety

of sources, including taxes, fees, and payments from the federal government. In addition to this,

the state has a sizeable amount of outstanding debt and an appropriations program for large

capital expenditures. The COVID-19 epidemic has caused substantial issues for the state's

finances, despite the fact that it was expected that the state's budget would be balanced.
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References

California State Senate (n.d.) The Budget Process. A Citizen's Guide to Participation.

https://www.senate.ca.gov/sites/senate.ca.gov/files/the_budget_process.pdf

California State Association of Counties. (n.d.). Overview of California Legislative

Process. https://www.counties.org/sites/main/files/file-attachments/v2-tab5_-

_legislative_advocacy.pdf

Legislative Analyst's Office. (n.d.). The 2023-24 budget. https://lao.ca.gov/budget

Newsom, G. G. (2022). Governor's Budget Summary.

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