The California legislature recently passed the 2021-22 state budget bill. California expects a staggering $75.7 billion surplus, an amount that surpasses most states’ annual spending. California’s impressive bank account balance is due to Silicon Valley’s technology boom, a surging stock market and a large share of workers who transitioned to a remote schedule during COVID-19.

“California’s economy is coming roaring back. With the largest surplus in California history, we’re using this once-in-a-generation opportunity to create an economic recovery that will leave nobody behind – with money going directly back to Californians, the nation’s largest small business relief programs, and unprecedented investments to address California’s most persistent challenges such as homelessness, climate change and equity in our education system,” says Gov. Gavin Newsom. “And while we proudly embrace the California Comeback, this last year reminds us that we need to plan for the unexpected. We must maintain a strong fiscal foundation that does not overcommit the state to long-term spending it cannot afford, which could lead to future cuts. I am confident we will reach a budget agreement that reflects our shared values and keeps California on a sustainable path of recovery and growth.”