Introduction The budgeting process of any given state is an arduous task since it involves a number of active processes. A budget of a country is reviewed annually in order to determine the expenditures within that fiscal financial year. The California budget process is a dynamic process which requires regular reviews in forms and procedures, law, descriptions and instructions among other factors. The process involves the combination of the country’s assembly phases which includes the executive, legislature and the governor’s. These assembly phases (executive, legislature, and governor) work integrally and are directly coordinated with the public input, the economy, federal and local governments, initiatives and legislation, legal issues and the natural events. By embracing literature review, this case study will look at the California budget, how it works, how and where they get their money, the problems the system face. Besides, the paper will address the available alternatives ways of solving these problems. Consequently, the paper will point out the recommendations available to these problems. Background of the study This case study identifies the California’s budget process and how its budget process works to effectively manage the expenditures of California’s annual fiscal year. The analysis will focus on the stages involved from the initial design process to the final implementation process of the budget process of the California state. The study will also focus on the financiers of the budgeting process and the different criteria employed by the government of the California state to facilitate the smooth funding operations of the budget process to ensure efficiency. The study will also analyze the various challenges or problems faced by the California state with the budget process. The study will identify these problems and elaborate on them and look at the causes of these problems. The study will determine the possible solutions to the present problems and draw up recommendations to be taken. Literature review California budget process According to Department of Finance (2011), The California budget process is formulated by the assembly that draws out a simultaneous budget resolution annually. The house lays out a long-term plan (usually five years) of the California state deficit targets, revenues and the overall total expenditures. The president’s signature and the influence of law are omitted by the congress during the process of the budget resolution, hence, neither the president nor the force of law possess the right to reject the proposed budget resolution by the congress. The initial process in the budget resolution involves the formulation of a strategy to allocate the gross total expenditures among the key departments of the government such as health, transportation, defense among others. The way the money should be spent is determined by the senate and the house committees to the appropriate individual congressional committees and their subcommittees (Department of Finance, 2011). The independent congressional committee then carefully analyses the budget for consistency with the aggregate targets, properly analyzing program by program and check on the consistency of the details of the budget (Anagnoson, 48). The overall and the concluding debate on the budget resolution focus on the budgets of the individual programs and their implic