“Children Learning, Parents Earning, Communities Growing″ 
Last Updated 07/3/2024

2024-25 California State Budget Information

Click here to see California's Budget Process 
For an overview on the budget process and its timeline, click here
Click here to watch or listen to all of the rooms that the Senate & Assembly use for broadcasting
Committee Information, Rules & Position Letter Deadlines can be found here

UPDATES & HEARINGS

• On Saturday, June 29, Governor Newsom officially signed the 2024 budget that goes into effect today. The $298 billion spending plan includes many of the agreements. However, there has not yet been action on the human services and child care trailer bills.

• Budget deal was reached.  Budget Bill Jr. SB 108 is pending action as are a number of budget related trailer bills.  AB 107 (Budget Act of 2024) was signed on June 26, 2024/

  Below are the Budget Bill Jr. # 1 and relevant budget related bills impacting our field: 

  • SIGNED on June 26, 2024 - SB 108: Amendments to Budget Act of 2024 (“Budget Bill Jr.” #1 of 2024) - Amends AB 107 (Gabriel), the Legislature’s 2024 Budget Agreement to make changes necessary to implement a three-party budget compromise with the administration.
  • Includes an approximately $8 million adjustment to reflect the costs of funding 11,038 new General Child Care slots in 2024-25 and ongoing, partially funded by increased federal funds.
  • Re-appropriates a total of $47 million in Emergency Child Care Bridge funds from 2023- 24 into 2024-25.
  • Appropriates $9 million General Fund for the Department of Social Services (CDSS) to fund local diaper and wipe distributions for low-income families with infants or toddlers.
  • Expands California State Preschool Program eligibility to children ages 24 to 35 months, until 2027.
  • Authorizes contract expansion streamlining for the Departments of Social Services and Education for child care and preschool awards to existing contractors.
  • SIGNED SB 109: Amendments to Budget Act of 2023 (“Budget Bill Jr.” #5 of 2023)
  • SIGNED SB 153: Education finance: education omnibus budget trailer bill
  • SIGNED AB 161: Human services
  • CalWORKs Maximum Aid Payment (MAP) Increase. Commencing on October 1, 2024, increase the maximum aid payments in effect on July 1, 2024, by 0.3 percent, pursuant to funding available in the Child Poverty and Family Supplemental Support Subaccount.
  • Family First Prevention Services Program. Extends state law from Ju1y 1, 2025 through July 1, 2028 for the Family First Prevention Services program administered by the CDSS. Allows the CDSS to exempt a small county, as named, from the requirement to use state funds allocated for the nonfederal share of cost of prevention services. A county for which this requirement is waived is required to use state funds for the cost of other prevention services offered pursuant to the county’s comprehensive plan, allowable administrative activities performed for the program, and program implementation costs in accordance with written guidance issued by the CDSS.
  • SIGNED AB 162: Developmental services
  • SIGNED SB 163: Early learning and childcare
  • Codifies the 2021-22 Budget Year agreement to grow the state-subsidized child care system by 206,800 new children served, compared to the 2020-21 Budget Act, with a new 2028 ultimate goal timeline to reflect the Administration’s “pause” proposal. Provides legislative intent to resume progress in access growth in the 2026-27 Budget Act with 12,000 new slots and 2027-28 Budget Act with 17,000 new slots. Recognizes that the Budget is currently supporting over 118,800 new child care slots toward this goal, in various programs, as specified.
  • Fully funds all 11,038 awarded expansion slots from existing child care appropriations, beginning October 1, 2024.
  • Requires Department of Social Services reporting through January 2026 on the Alternative Methodology implementation progress, and requires a hold harmless policy in the Alternative Methodology to all 2024-25 child care and preschool rates, inclusive of onetime cost of care plus payments.
  Click here to read the Assembly Budget Committee's Floor Report.
  Click here to read the tralier bill analyses.
  Click here to read the agreement.

• CHAPTERED on June 26, 2024 -  AB 107, the Budget Act of 2024. 

• AB 107 (Gabriel), Budget Act of 2024 - reflects the joint legislative budget plan approved by the two houses’ budget committees in late May. (By custom, budget-related bills typically go into print in identical versions in each house. Accordingly, Assembly amendments to the SB 107 version of the budget bill are pending.) (TFC sheet of excerpts from AB 107)

• AB 154: Education finance: Proposition 98: suspension.
• AB 167: Taxation. 

• Trailer Bill Language
• Resource Family Approval Program Alignment with Emergency Caregiver Funding Program (updated: 05/24/2024)
• State and Federal Kinship Guardianship Assistance Payment Program Alignment (updated: 05/24/2024)
• Excellence in Family Finding, Engagement, and Support Program (updated: 05/24/2024)
• Senate Bill 326 Clean Up (updated: 05/24/2024)  NOTE:  Language on home visiting and foster care
• CalWORKs Intensive Case Management Hourly Increase Pause (updated: 05/31/2024)
• Family Reunification Delay Implementation (updated: 05/31/2024)
• CalWORKs Map Increase (updated: 05/23/2024)
• Data Sharing to Quantify the Impacts of the Safety Net on the Whole Californian (updated: 05/23/2024)
• K-12 Omnibus (May Revision) (updated: 05/29/2024)

2024 -25 May Revision 

• May 29 - Released Senate and Assembly 2024-25 Budget Agreement.  Senate summary.   
• May 22, 2024 - Assembly Budget Subcommittee 2 Major Issues & Memo summary
• Trailer Bills - Links to trailer bills below direct you to a Google document to provide input, questions or concerns
• Education Omnibus Bill with May Revision Language – includes language removing requirement to serve 10 percent of students with exceptional needs
• INCLUDES:  After the children enrolling pursuant to subparagraph (B) are enrolled, three- and four-year-old children without exceptional needs shall be enrolled in income ranking order, with the lowest income according to the income ranking on the most recent schedule of income ceiling eligibility table, as published by the Superintendent at the time of enrollment, shall be enrolled first.
• If two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, the child that has been on the waiting list for the longest time shall be admitted first.
• Excellence in Family Finding, Engagement and Support Providers 
• Resource Family Approval Program Alignment with Emergency Caregiver Funding Program
• Children and Youth Behavioral Health Initiative Fee Schedule 
• Enhanced Information Sharing for Small Family Child Care Homes 
• Link to May Revision Summary
• May Revise Details
• Child Care Slot Expansion Pause at Current Level—Approximately,119,000 slots of the promised 200,000 have been realized; a pause at the current 119,000 slots until fiscal conditions allow for resuming the expansion will result in a revenue gain of $489 million in 2024-25 and $951 million in 2025-26. NOTE: Governor noted commitment to continue after two-year hold but concern it will be captured as a permanent reduction and the promised 200,000 will never be realized. The number of slots not yet released is 81,000.
• Reduces CalWORKs Home Visting Program by $47.1 million ongoing
• Reduction in the Proposition 98 funding
• Eliminates $550 million in facility funding for California Preschool, Transitional Kindergarten and Full-Day Kindergarten
• Eliminates $47.9 million in 2025 and $97.9 million ongoing starting in 2026-27 to support the California State Preschool Program for State Preschool to serve at least 10 percent of students with disabilities.
• Sweeps all of the $900 million in the Safety Net Reserve.
• Eliminates CalWORKs Mental Health & Substance Use Disorder Services
• 5/10/2024 ASM Budget - Preliminary Summary of Governor’s Proposed 2024-25 May Revision
• 5/10/2024 - SEN B&FR - Overview of the May Revision

2024-25 January Proposed Budget 

On January 10, 2024, the Governor released his proposed budget for the 2024-2025 fiscal year. Follow this link throughout the budget process as more budget items are released, including the May Revise and final, enacted budget. Below, you will find the direct link to the proposed budget, along with the budget detail.

Senate & Assembly Budget Hearing Schedules

• Wednesday, May 1 - ASM Budget Sub 2 @ 1:30 - Governor's proposed use of safety unmet reserve; CDSS Health & Human Services Automation Projects - State Capitol, Room 444

Note: Procedures put in place to accommodate the pandemic restrictions have been reverted back to pre-pandemic practices in the Senate and Assembly. Teleconference testimony during committee hearings will no longer be available. 

• Senate Budget & Fiscal Review
• Senate Budget Sub. 3 on Health & Human Services
• Click here to send in written comments
• Assembly Budget Committee
• Assembly Budget Sub. 2 on Human Services - Cover CalWORKs, child care & CDSS.  
• Click here to send in written testimony.

GOVERNOR'S PROPOSED 2024-25 BUDGET SUMMARY

• 3/14/24 - Senate's Early Action List
• Governor's Proposed 2024-2025 Budget Detail
• Budget Trailer Bills & 2024-25 Proposed Budget Trailer Bill Language Tracking
• K-12 Omnibus (2/1/2024)
• WIC Online Ordering (2/1/2024) 
• Bringing Families Home Program (1/25/2024) Housing related supports to eligible families.
• Family First Prevention Services program (1/31/2024) Small counties may be exempted.

Senate & Assembly Publications/Reports Related to the 2024-25 Budget
The Senate and Assembly will each release reports or publications throughout the 2024-25 budget process, including but not limited to, spending plans and/or responses to the Governor's proposed budget. You will find links to those individual documents below.

• Senate Early Action Budget Plan: Shrink the Shortfall - As the California State Senate works to craft a 2024-25 state budget, once again the primary goal will be to protect the progress made to core programs in recent years and make the tough decisions to tackle the deficit. Step one of this effort is to enact the Shrink the Shortfall early action plan, to immediately decrease the shortfall to a more manageable level for the critical time period leading up to the June 15 budget deadline date. This early action plan uses the current point-in-time shortfall estimate range of $38 billion to $53 billion.
• The 2024-25 Budget: Deficit Update (2/20/2024) - The state already faces a significant deficit this year—we estimate it totaled $58 billion under the administration’s revenue forecast at the time the Governor’s budget was proposed in January. However, recent revenue collections data reflect even further weakness relative to those estimates. Specifically, our forecast is about $24 billion below the Governor’s budget across 2022‑23 to 2024‑25.
• LAO 2024-25 Budget Overview (1/13/24)
• Highlights of Governor's Proposed 2024-2025 Budget (Assembly Report 01/10/24)
• The 2024-25 Budget Implementation Update (Senate Report 01/01/24)

ADDITIONAL RESOURCES:

• TFC April Budget Input Letters to the Senate & Assembly
• April LWC Priorities
• CA Budget & Policy Center: First Look: Understanding the Governor's 2024-25 State Budget Proposal
• CA Budget & Policy Center Briefing: Looking Ahead to 2024: The State Budget Proess Explained
• CalMatters: California’s budget whiplash showed the pitfalls of forecasting revenue
• #CABuget info by budget advisor Jason Sisney
• LAO: $68 billion deficit to address in 2024
• Projected revenues did not materialize in November
• California Tax Day 2023: revenue update
• November tax receipts now key for fiscal trend
• California's October tax receipts far below projections
• Major California tax collection week ahead
• IRS announces additional California deadline extension
• A look ahead to California October tax receipts
• LAO 2024-25 Budget Outlook
• The "Big Three" Revenue Outlook
• MSN: California’s budget gap is likely to grow as state tax collections fall far below projections
• MSN: Could a California revenue shortfall mean furloughs for state employees? Here’s what to know
• OC Register: California slashes state tax collection outlook
• LA Times: Healthcare minimum wage expected to cost $4 billion in first year as California budget deficit looms
• SF Chronical: California has a $20 billion problem and no clear way to solve it
• CA Budget & Policy Center: Poverty Rapidly Increased for California’s Youngest Children

Archived Budget Information: