Inside Sacramento: Key Updates on California’s 2026-27 State Budget Process
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CSAC has a finger on the pulse of political and governmental activity in Sacramento and cuts through the noise to deliver the trends, insights, and key developments necessary to keep counties well-informed. Here’s what you need to know about the state budget development process for 2026-27 this week:
Last Week: CSAC Releases Comprehensive Summary of the Governor’s Budget Proposal
As reported last week, the California Department of Finance presented the Governor’s proposed state budget for 2026-27 along with the state’s updated revenue forecast. A recording of the press conference is available on the Governor’s YouTube channel, and the Department’s summary of the Governor’s budget proposal and other fiscal details are available on their website. Within hours, CSAC published a comprehensive overview and analysis of the Governor’s budget proposal and highlighted the notable impacts to county governments via our Budget Action Bulletin, which is published on the CSAC State Budget webpage.
Next Week: Legislative Budget Committee Hearings
Legislative leadership wasted no time scheduling budget overview hearings to discuss the Governor’s fiscal plan. Usually held in late January, this year the Assembly and Senate budget committees will convene next week to review the Governor’s budget proposals and begin shaping the legislative vehicles that will eventually become the 2026 Budget Act, as follows:
- The Assembly Budget Committee continues to be chaired by Assemblymember Jesse Gabriel, and will meet at 11:00am on Tuesday, January 20. Read the Assembly Budget Committee’s publication: Highlights of the Governor’s Proposed 2026-27 Budget.
- The Senate Budget and Fiscal Review Committee, chaired by veteran lawmaker Senator John Laird this year instead of Senator Scott Wiener, will meet at 9:00am on Wednesday, January 21. Read the Senate Budget and Fiscal Review Committee’s publication: Summary of the Governor’s proposed 2026-27 Budget.
However, most budget committee work is done through subcommittees that focus on specific policy areas. A list of subcommittees by policy area and their hearing schedules are available on the Senate and Assembly budget committee websites.
CSAC will submit letters to the Governor’s Administration, legislative leadership, and budget committee chairs in both houses offering comments to inform budget conversations throughout the spring and summer.
Coming Weeks: Next Steps in the Budget Development Process
Policy wonks, budget hawks, and anyone else keenly interested in nerdy details of the Governor’s budget proposal for 2026-27 are eagerly awaiting the February 1 deadline for the Administration to publish the “trailer bill” language that accompanies the main budget bill(s). The budget bills and the trailer bills are the vehicles that carry the statutory language that authorizes budget appropriations and accompanying implementation language. This year, the Governor’s proposed budget for 2026-27 is reflected in budget bill vehicles AB 1563 (Gabriel) and SB 879 (Laird). The Department of Finance maintains a list of trailer bill language proposals that accompany the Administration’s budget proposals on their website (trailer bill language website). CSAC legislative staff will analyze the contents of trailer bills for their impact to county government and will publish more information and commentary on specific subjects in the coming weeks and months.
- What are “trailer bills”? Trailer bills accompany the main budget bill by enacting any corresponding changes to state law necessary to implement the programs and proposals in the budget. While the budget bill includes expenditure authority and sparse provisional language regarding the use of funds, the trailer bills include implementation language for specific appropriations. These bills are called “trailer” bills because they are not subject to the same deadlines as the budget proposal and therefore trail after the main budget bill is introduced. Pursuant to state law, all trailer bill language necessary to implement and accompany the Governor’s proposed state budget is due to the Legislature by February 1 annually (Gov Code Section 13308).
How to engage with CSAC’s budget advocacy
As county leaders, this is the moment to make our collective voices heard on the issues that matter most to our communities, ensuring our feedback is considered during budget deliberations. Individual counties can engage with CSAC’s budget advocacy efforts by:
- Sending a letter from your county to the Chairs of the Senate and Assembly budget committees. Submitting letters directly to budget committees and meeting with their legislative members to ensure the voices of their communities are heard in addressing their unique needs.
- Submit letters to the Assembly Budget Committee by emailing AsmBudget@asm.ca.gov.
- Submit letters to the Senate Budget and Fiscal Review Committee by emailing SBUD.Committee@senate.ca.gov.
- Contact your lawmakers to share the county perspective and how the proposed state budget for 2026-27 will affect your county: Senate Roster | Assembly Roster.
CSAC will continue to publish comprehensive updates on the state budget development process in our weekly bulletin. In the interim, please contact CSAC legislative affairs staff with questions about specific policy areas.