California's budget was unexpectedly positive in 2020 due to a bunch of IPOs. Interestingly, the governor's proposed budget explicitly acknowledges it as a windfall. Naturally, the proposal is to spend most of the windfall as quickly as possible.
The Governor’s $15.5 Billion Windfall Comparing LAO to DOF Windfall Calculation Our November Fiscal Outlook anticipated a windfall of $26 billion. Major sources of differences are: Under Department of Finance (DOF) estimates, $5.6 billion more in reserves and debt payments required under Proposition 2 (2014). DOF includes $2.8 billion more in coronavirus disease 2019 expenditures, net of federal reimbursements. DOF’s estimates of baseline spending on major Health and Human Services programs higher by about $2 billion. Our office and DOF have very similar revenue estimates (DOF higher by only $1.7 billion). How the Governor Allocates the Windfall