Legislature Meets Constitutional Deadline for Budget, Negotiations Continue with Administration
On Monday, the Senate and Assembly passed SB 74 (Mitchell), representing the Legislature’s bicameral spending plan for the 2020-21 fiscal year. In addition to SB 74, the Legislature approved trailer bills related to 2019 Budget Act augmentations (AB 75), education finance (AB 76), and state taxes and charges (AB 85). The Legislature’s action on Monday was largely a formality to meet the June 15 constitutional deadline to pass a budget. Recall, the 2010 ballot initiative approved by voters requires the Legislature to meet the deadline in order to continue receiving their paychecks.
The Legislature’s spending plan takes a differing approach than the Governor’s May Revision in addressing the state’s $54.3 billion budget deficit, as well as trigger cuts contingent upon federal financial assistance. Negotiations between legislative leaders and the Newsom Administration continue as the parties attempt to resolve the remaining differences in their budget plans. Upon completion of negotiations, a comprehensive budget package is anticipated to be enacted through a series of subsequent budget trailer bills that will include detailed spending provisions.
With the next fiscal year beginning in just over 10 days, legislative leaders and the Newsom Administration face a quickly approaching deadline to finalize the state’s budget. The Assembly, which began its three-week summer recess upon adjournment of session yesterday, is expected to be called back to Sacramento once budget trailer bills are finalized. As developments occur over the coming days, CHEAC will keep members apprised.