Budget Negotiations Continue, Legislature Prepares Budget Bill

In what has been a relatively quiet week in Sacramento on the budget front, closed-door negotiations remain ongoing between the Newsom Administration and legislative leaders on the state’s FY 2021-22 budget. Recall, last week, the California State Senate and Assembly announced agreement between the two houses on a unified legislative budget package, setting up the negotiation process with the Newsom Administration.

The Legislature, facing a June 15 constitutional deadline to pass a budget bill, has prepared AB 128 (Ting) and SB 128 (Skinner) which reflect the legislative budget framework agreed to by both houses. The measure was placed into print at 9:00 pm on Thursday, allowing the Legislature to take up the measures for a vote on Monday, June 14 in compliance with the state’s 72-hour in-print rule. Notably, the legislature’s budget bills include funding to cover local costs of the recall election against Governor Newsom which is estimated by the Department of Finance (DOF) to cost in upwards of $215 million.

While a deal between the Legislature and Newsom Administration remains elusive, the Legislature is prepared to pass a budget bill consistent with the constitutional deadline of June 15. It is possible that the Legislature will pass its version of the budget while negotiations continue with the Administration beyond the June 15 deadline. In many areas, specific funding and implementation details, including trailer bill language, are anticipated to be finalized over the coming months.

CHEAC continues to closely monitor budget developments as the Newsom Administration and legislative leaders continue to hammer out details. Any relevant updates, including on CHEAC’s sponsored request for public health infrastructure and workforce investments, will be shared with CHEAC Members.