Operating appropriations for 2019–21, as passed by the Legislature, are $52.852 billion— an 18.3 percent increase over 2017–19 appropriations. This is the largest increase in at least 25 years, and it comes after significant increases of 13.6 percent in 2015–17 and 16.9 percent in 2017–19.

A major contributor to the increase in appropriations for 2019–21 is an exceptionally high maintenance level. The cost of just continuing current services is expected to increase by 13.0 percent. On top of that, the Legislature increased appropriations for new policy by $2.367 billion.

Major areas of new spending include employee compensation, public schools, and higher education. Collective bargaining agreements and K–12 health benefits are funded. Appropriations for special education, financial aid, and behavioral health are boosted.

A series of large spending increases, combined with the likelihood of an economic downturn sometime in the future, make this budget unlikely to be sustainable.

Read the full report here.