State Budget
How the State Budget Process Works
The California budget is created from a multi-faceted process that takes place in the first half of each calendar year. CFT is an active participant in the process because public school and community college districts receive two-thirds of their funding from the state, and decisions made by state legislators set the stage for those made by district governing boards.
BUDGET TIMELINE
- In early January the governor proposes a budget.
- In February the Legislative Analyst examines the proposals and issues a report. Budget committees meet in the California Assembly and Senate to discuss the proposals. CFT members and lobbyists advocate on behalf of education expenditures.
- The May Revision is the next milestone. The governor can refine earlier ideas and revise his January proposals based on updated revenue projections. Committees continue to meet in the Assembly and Senate to discuss the proposals.
- By June 15, the Legislature must send its budget to the governor. And thanks to voters who passed CFT-sponsored Proposition 25 in 2010, the Legislature can now pass the budget with a simple majority vote. Until then, the two-thirds vote required caused disastrous delays in funding. Prop 25 helps ensure the budget is on-time and not delayed.
- Once the governor receives the Legislature’s budget, he has the opportunity to exercise line-item vetoes, but he cannot add more appropriations.
- By June 30, the governor must sign the final budget.
CITIZEN’S GUIDE
The Budget Process: A Citizen’s Guide to Participation is prepared by the California Senate and provides the definitive overview of the budget process.
OUR STATE BUDGET BRIEFS
The CFT Research Department analyzes the state budget and the impact it will have on education, from early childhood to university. The Research Briefs span the timeline of budget process, from the governor’s January proposals to the adopted and signed budget.
Governor’s budget proposal for 2025-26 reflects improved fiscal outlook and unprecedented uncertainty
Research Brief
February 12, 2025
Governor Newsom released his initial budget proposal for the upcoming fiscal year just as the historic wildfires exploded across Los Angeles and before the presidential inauguration took place. The 2025-26 proposal showed California revenues were about $16.5 billion higher than anticipated and included a small surplus of $363 million. Newsom’s plan largely follows the framework for this year that was imagined in last summer’s budget that was intended as part one of a two-year balanced budget deal.
State budget for 2023-24
Protects public education with ongoing funding; staffing crisis requires more support
State budget for 2023-24 protects public education with ongoing funding; staffing crisis requires more support:
Governor Newsom and the state Legislature came to an agreement in late June on a budget for 2023-24 that includes $225 billion in general fund expenditures while addressing a $31.7 billion deficit.
The Proposition 98 funding minimum guarantee is $108.3 billion in 2023-24, which is less than what last year’s enacted budget assumed, but slightly higher than the revised guarantee for 2022-23.
CFT-Sponsored Bills Move Through Legislature
Key legislation passed through the California Assembly in June, advancing to the State Senate for consideration later this summer.
AB 938 increases base funding under the Local Control Funding Formula by 50% to support a 50% raise in TK-12 salaries. The Assembly passed the CFT-sponsored bill by a unanimous 77-0 vote.
AB 1699 prohibits school districts from retaliating against classified staff for refusing or accepting a vacancy. The bill gives employees at least 10 days to apply for a position before the job opens to the public.