May 21, 2024 - The Governor’s May Revision proposes to (1) administratively establish a new ongoing unallocated 7.95 percent reduction to state operation expenditures and (2) make the 2024-25 unallocated reduction to state operation expenditures related to vacant positions ongoing (it was approved as “one time” as part of the Legislature’s early action package). Between the two proposals, the administration proposes that the Legislature delegate responsibility to the Governor to determine how to permanently reduce state operations by roughly 10 percent. As we discuss in this post, we think there is merit to the Department of Finance finding operational efficiencies; however, (1) any resulting reductions would be made based on the Governor's priorities and not necessarily the Legislature's priorities and (2) we think there is a high risk that the level of savings assumed from these two unallocated reductions will not fully materialize in 2024-25. To the extent that savings do not materialize, these proposals would create a larger future budget challenge.
March 21, 2024 - In this post, we analyze the Governor's proposals to (1) use vacancy rates to identify one-time unallocated spending reductions across state departments through a budget exercise, (2) eliminate the telework stipend established under current labor agreements, and (3) defer June 2025 payroll by one day to reduce state payroll costs in 2024-25 by one month's payroll.
February 24, 2025 - This brief analyzes various budget proposals from the California Air Resources Board.
February 12, 2025 - In this brief, we provide an overview of the proposed funding for the judicial branch in 2025-26. We also analyze the Governor’s budget proposals to increase discretionary funding to the trial courts and start a capital outlay project to construct the new Tracy Courthouse in San Joaquin County.
February 6, 2025 - In this brief, we provide an overview and initial analysis of the Governor’s higher education budget plan.
February 12, 2025 - In this brief, we discuss major transportation funding proposals included in the Governor’s 2025-26 budget.
January 13, 2025 - Update (1/16/25): A set of tables detailing various solutions and proposals has been appended to the online version of this report. They are available using the HTML link above.
On January 10, 2025, Governor Newsom’s administration presented its proposed state budget to the California Legislature. In this report, we provide a brief summary of the Governor’s budget based on our initial review as of January 12. In the coming weeks, we will analyze the plan in more detail and release many additional issue-specific budget analyses. For those additional analyses, please see our budget page.
February 12, 2025 - In this brief, we assess the Governor’s cap-and-trade expenditure plan for 2025-26 and provide associated recommendations.
April 15, 2024 - This brief analyzes key 2024-25 Governor’s budget proposals related to various child care and development programs administered by the Department of Social Services.