CSAC Bulletin Article

2024-25 May Budget Revision to be Released on May 10

May 9. 2024

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.

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