For the first time in many years, the Administration's proposed state budget does not project a deficit. Painful budget cutting in recent years combined with voters passing Proposition 30 in November to generate revenues finally have put California on more stable fiscal ground. However, it is critical to recognize that kids have borne a disproportionate share of the cuts over time, and these cuts go largely unrestored in the 2013-2014 state budget proposal. As a result, all Californians will continue to pay for the long-term consequences of underinvesting in children's health, education, and overall well-being. This paper details these and other ways the January state budget proposal impacts kids.