Governor Newsom Releases FY 2020-21 May Revision, Projects $54.3 Billion Budget Shortfall

On Thursday, Governor Gavin Newsom released his FY 2020-21 May Revision budget, reflecting drastically different economic and fiscal conditions from when he unveiled his original budget proposal in early January. Notably, the Newsom Administration projects a $54.3 billion budget deficit, requiring the Administration to draw down a series of reserve funds, withdraw previously proposed investments, and cut a number of programs and services. Slides from the Governor’s press conference are available here.

CHEAC Staff prepared a memo detailing items of most interest to local health departments available here.

Budget subcommittees will hold hearings over the next week to review all items detailed in the Governor’s May Revision. Specifically, Assembly Budget Subcommittee No. 1 on Health and Human Services will hear all health-related items on Tuesday, May 19 and the Senate Budget and Fiscal Review Subcommittee No. 3 on Health and Human Services will hear all health-related items on Saturday, May 23. The Legislature will then work through budget items in order to meet the constitutional deadline to pass a budget on June 15.

Additional May Revision information can be found at the links below:

Governor’s May Revision Summary

California Department of Public Health (CDPH) May Revision Highlights

Department of Health Care Services (DHCS) May Revision Highlights

May Revision Press Conference Video