California Gov. Jerry Brown faced a state in dire financial straits when he took office in 2011, prompting him to push for a budget fix that included tax extensions and spending cuts to higher education and social programs.
Yet 7½ years later, California still faces risks, including a potential trade war between the U.S. and China that threatens tens of thousands of jobs in the state. Another fiscal risk for California is due in part to the state's tax system, which makes it especially vulnerable during times when the economy or stock market turn down.
Brown signed a record $201 billion state budget on Wednesday, his last while in office. It includes increased spending on public universities and programs such as child care and welfare. It also has new money for combating homelessness and restores some low-income health benefits that were eliminated during the recession.