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  • State Government
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California Has Lost A Greater Share Of Revenue Than Most States Due To COVID-19

  •  Nicole Nixon 
Monday, August 3, 2020 | Sacramento, CA

This story is part of an NPR nationwide analysis of states' revenue and budgets during the pandemic.

California's progressive tax structure means state revenue does well in good economic times but suffers more than most other states when there's a downturn.

In January, California was projecting a $5.6 billion surplus, but the pandemic quickly transformed that into a $54 billion deficit. The Golden State tried a little bit of everything to help stanch the fiscal bleeding: lawmakers canceled new spending, drew from the state's rainy-day fund and limited tax breaks for large and medium-sized businesses.

Democratic Gov. Gavin Newsom also is asking for up to $14 billion in aid from Congress, arguing that "the federal government has a moral, ethical and economic obligation to help support the states."

But if that relief doesn't come through, it would mean furloughs for state workers and slashed funding for state universities and courts. It would also mean a total of more than $12 billion in deferred payments to K-12 school districts and community colleges, which would have to front those costs for now and hope the state can afford to pay them back next year.


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    More about Coronavirus

  • NIAID-RML via AP

    Coronavirus In California: Latest Updates And Resources

    The coronavirus has impacted nearly every aspect of life in California and around the world. Here are resources and all our coverage at CapRadio and NPR.

    More about California Budget 2020

  • Andrew Nixon / Capital Public Radio

    California Budget 2020

    Complete coverage of California's budgeting process for the year 2020-2021 — from Gov. Gavin Newsom's initial and revised proposals, to expert analysis and lawmaker reactions, to debate, revisions and eventual passage.

 CoronavirusCalifornia Budget 2020

Andrew Nixon / CapRadio

Nicole Nixon

Politics Reporter

Nicole covers politics and government for CapRadio. Before moving to California, she won several awards, including a regional Edward R. Murrow Award, for her political reporting in her hometown of Salt Lake City.  Read Full Bio 

 @_Nixo Email Nicole Nixon

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