Governor Jerry Brown signed the new budget for California on Wednesday but this budget relies heavily on voters passing a proposed multi-billion dollar tax hike in November.
If voters reject the more than $8 billion 7-year tax hike, a series of automatic cuts would kick in.
The new budget includes cuts to welfare and social programs.
In a statement, Governor Brown said, "I commend the legislature for making difficult decisions, especially enacting welfare reform and across-the-board pay cuts."
The budget was pushed through by the Democrat majority and oposed by Republicans, who say the budget relies on gimmicks and taxes that may not materialize.
The new budget goes into effect on Sunday.