The Governor’s Office announced it will release the revised
2024-25 budget proposal on Friday, May 10th at 11 AM.
The Governor will begin a press conference around that time,
which will be broadcast on the Governor’s
YouTube channel.
The California Constitution requires the Legislature to pass a
budget bill by simple majority vote by midnight on June 15 of
each year. If this deadline is not met, state lawmakers risk
forfeiting their salaries and travel stipends until the budget is
passed. However, in recent years, although a placeholder
budget bill is passed by June 15 to de facto meet the
constitutional requirements and avoid loss of pay, negotiations
on the fine details of the budget have continued up until the
start of the next fiscal year on July 1—and can often extend into
August for some of the more complicated or controversial budget
items.
In mid-April, the Legislature
amended the 2022 Budget Act and the 2023 Budget Act,
resulting in a cumulative net savings across three fiscal years
of approximately $17.3 billion. Effectively, this early action
agreement between the Newsom Administration and the Legislature
resulted in a significant reduction in what is being collectively
characterized as the 2024-25 budget shortfall. According to
legislative budget leadership, the early budget action leaves a
remaining shortfall between $8.4 to $23.4 billion that lawmakers
will begin to negotiate in earnest following May 10.
The complete scope of the budget deficit, however, depends on
other factors, including actual revenue received for fiscal year
2023-24, which ends on June 30. The Legislative
Analyst’s Office (LAO) projects that revenue could fall as
much as $19 billion below the Governor’s budget proposal’s
projections across fiscal years 2022-23 to 2024-25.
CSAC will issue a budget action bulletin (BAB) detailing the
provisions of the May budget revision, similar to the
BAB released after the Governor unveiled the first 2024-25
state budget proposal on January 10, 2024.
Soon after details of the May budget revision are released, CSAC
will submit budget advocacy letters to the Governor’s Office and
leadership in the Assembly and Senate. Copies of the budget
advocacy letters submitted in response to the 2024-25 budget
proposal issued in January can be found on the CSAC website.
