California's 2016-17 Budget: Preparing for Gloom with a Rainy-Day Fund

Abstract

California was in a better position during the 2016-2017 budget cycle than it had been in previous years. Rather than arguing over budget cuts, the majority Democrats spent their time debating spending priorities. In the end, legislative Democrats and Governor Jerry Brown both claimed victory, which left the state on a solid financial footing. As Governor Brown entered the second half of his second term, the Democratic Party continued to strengthen its hold on the state. November 2016 Election Day victories provided the party with a two-thirds majority in the legislature, ensuring state government in the coming years would remain an exclusively intraparty affair.