The Administration's January proposal for the 2014-15 state budget projects a surplus, due to painful budget cutting in recent years combined with the economic recovery and voter approval of new revenues. While the proposal invests some of the additional revenue in children, it falls well short of what is needed. California's kids have borne a disproportionate share of the cuts over time and these deep cuts go largely unrestored in the proposed budget. Unless significant changes are made, all Californians will continue to pay for the costly consequences of underinvesting in children's health, education and overall well-being. The Administration's 2014-15 budget proposal avoids new cuts to children's health, education, and overall well-being, and provides important initial reinvestments and reforms for K-12 education. Legislators must build on this framework by finding ways to better support children's early education programs and access to the health care services they need. The short- and long-term impacts of failing to invest adequately in children are immediate and severe for California. This brief report contains additional details on how the state budget proposal impacts kids.