Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive
Connie Juarez-Diroll, Chief Legislative Officer
Subject: State and Federal Legislative Update #5-Update on the Governor's Revised State Budget for Fiscal Year (FY) 2024-25 and 2024 State and Federal Legislative Sessions
RECOMMENDATION:
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Recommendation to:
A) Accept this update on the Governor's FY 2024-25 State Budget Proposal, and
B) Accept an informational report on the 2024 State and Federal Legislative sessions.
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BACKGROUND:
On May 10, 2024, Governor Newsom released his revised budget proposal for the 2024-25 fiscal year. Based on updates from April tax collections, the May revision anticipates a $27.6 billion deficit for Fiscal Year 24-25, an increase of $7 billion from January. The Governor's proposal relies on the following budgetary strategies to close the shortfall:
* $4.2 billion in fiscal reserves,
* $3 billion in various efficiency measures in state administration,
* $15.2 billion in one-time and ongoing reductions,
* $14.8 billion in program pauses and shifts, and
* $7.5 billion in new revenues and borrowing.
In the coming weeks, the Assembly and Senate budget subcommittees will convene to review the Governor's updated proposal and adopt a unified legislative version to negotiate with the administration. The Senate and Assembly must pass a balanced budget bill for the 2024-25 fiscal year on or before June 15, 2024. The Governor will have until June 27, 2024, to approve the budget bill.
Initial policy and fiscal committee hearings have wrapped up as the State Legislature nears the session's halfway point. On May 16, 2024, fiscal committees in the State Assembly and Senate held hearings for more than 1,200 bills deemed to have a budgetary impact on the "Suspense File."
Several measures of significant importance to local government have qualified for the November 5 general el...
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