May 31, 2024

Assembly & Senate Joint Budget Plan

Since the release of the May Revision, the Assembly and Senate have worked hard to craft a joint budget plan which must pass by Saturday, June 15, 2024. The Budget Plan was released on May 29, with budget hearings in both houses on May 30. The Budget Plan restores funding to a number of vital safety net programs. We commend members of the ASM and SEN for protecting these programs and prioritizing California’s most vulnerable populations. You can read the summaries here and here.

Budget Plan Overview:

  • Solves for a $45 billion deficit in 2024-25 and projects a $30 billion deficit in 2025-26.

  • Uses less reserves overall than the Governor’s proposed budget including $12.2 billion of the Rainy Day Fund, $450 of the Safety Net Reserve, and $2 billion less of the Prop 98 Rainy Day Fund.

  • Creates budgeting reforms aimed at strengthening future budget resilience and avoiding significant budget deficits. It includes increasing the size of the Rainy Day Fund from 10% to 20% of the state budget and creating a new “Protected Surplus Temporary Holding Account” which holds future projected surpluses until revenues actually materialize.

  • Child Care Slots: Restores funding for Child Care slots, resulting in 11k more funded slots than proposed in the May Revision.

  • CalWORKs Programs: Rejects cuts to CalWORKs.

Click here to view the Network’s overview of the May Revision.

Budget Process Next Steps:

  • The joint budget plan will facilitate the passage of the legislative Budget Bill or Budget Act which is constitutionally required on or before Sunday, June 15. Note: The Budget Act must be published on the California Legislative Information website by June 12 to meet the 72-hour bill-in-print requirement.

  • The Governor will then have until Thursday, June 27 to sign or veto the legislative Budget Bill.

  • In late June, proposed trailer bills will be passed to further amend the Budget Bill before the 2024-25 fiscal year begins on Monday, July 1.

  • Legislation almost always returns in August for further budget amendments and to clean up the final Budget Bill.