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The Coronavirus Pandemic Will Test the State’s Budget Reserves

By Radhika Mehlotra, Jennifer Paluch

State reserve policies enacted since the Great Recession have boosted the capacity of California’s budget to weather a downturn, but a major recession due to COVID-19 would pose significant fiscal challenges.

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COVID-19

The coronavirus outbreak poses a tremendous challenge to California, the nation, and the global community. PPIC’s analyses examine the impacts of COVID-19 and how policy choices and other actions can help address them.

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Balancing Budgets and Need during Recessions: California’s Safety Net Programs

By Patrick Murphy, Caroline Danielson, Shannon McConville, Jennifer Paluch

During economic downturns, the state faces falling revenues and rising demand for safety net programs. In the last recession, California cut programs significantly. Next time, what steps can policymakers take to support those in need, while still balancing the budget?

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Record Growth Puts Money in the Bank for California

By Patrick Murphy, Jennifer Paluch, Radhika Mehlotra

More than 120 straight months of job growth has provided a major boost to state revenues, allowing for increased spending as well as record reserves.

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Preparing for California’s Next Recession

By Patrick Murphy, Jennifer Paluch, Radhika Mehlotra

California is enjoying one of the longest growth periods in history and appears well-prepared to endure a mild economic downturn. But a more severe crisis would exhaust current reserves, decrease school funding, and open a significant budget gap for several years. What steps can the state be taking to prepare for and minimize these outcomes?

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