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State finances

State spending increased from $56 billion in 1998 to $127 billion in 2011. California has the third highest per capita spending on welfare among the states, as well as the highest spending on welfare at $6.67 billion. In January 2011, California's total debt was at least $265 billion. On June 27, 2013, Governor Jerry Brown signed a balanced budget (no deficit) for the state, its first in decades; however, the state's debt remains at $132 billion.

With the passage of Proposition 30 in 2012 and Proposition 55 in 2016, California now levies a 13.3% maximum marginal income tax rate with ten tax brackets, ranging from 1% at the bottom tax bracket of $0 annual individual income to 13.3% for annual individual income over $1,000,000 (though the top brackets are only temporary until Proposition 55 expires at the end of 2030). While Proposition 30 also enacted a minimum state sales tax of 7.5%, this sales tax increase was not extended by Proposition 55 and reverted to a previous minimum state sales tax rate of 7.25% in 2017. Local governments can and do levy additional sales taxes in addition to this minimum rate.

All real property is taxable annually. Property tax increases are capped at 2% annually or the rate of inflation (whichever is lower), per Proposition 13.