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California’s budget whiplash: From a record-setting surplus to a massive shortfall in one year

Gov. Gavin Newsom unveils his 2022-23 state budget with a record surplus in Sacramento on May 13, 2022. This year, California has a budget deficit.
Rich Pedroncelli
/
AP Photo
Gov. Gavin Newsom unveils his 2022-23 state budget with a record surplus in Sacramento on May 13, 2022. This year, California has a budget deficit.

This time last year, there was excitement and possibility over , a shocking figure coming at the end of a bruising COVID-19 pandemic. But this year, excitement has turned into a fight over what not to cut as the state stares down a .

How did this budget whiplash happen? To understand how the state could, in one year, have a revenue swing of about $128.5 billion requires a look at how the state raises money for the general fund — the big pot of money that funds most state programs — and a few other complicated aspects of how California juggles completing budget requirements.

 is a nonprofit, nonpartisan media venture explaining California policies and politics. 

Recent threats to federal funding are challenging the way stations like JPR provide service to small communities in rural parts of the country.
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