Recap of this week's state budget developments
The next few days of income tax processing are among the most important of the year
Governor Signals More Proposed Cuts Ahead. On Tuesday, April 14, POLITICO’s Lindsey Holden and Eric He report, Governor Newsom told Assembly Democrats to expect more budget cut proposals, on top of those enacted in last year’s budget and those the Governor already proposed in January. One lawmaker said the governor is “going to be firm on not leaving a deficit.” “My obligation is to also have the back of the next governor and the next Legislature,” Newsom said.
Senate Democrats Release Budget Plan. On Thursday, April 16—today—California’s Senate Democrats released their state budget plan, “Foundation for the Future,” which aims to grow the state’s rainy day fund, rejects some cuts budgeted by the Governor, and increases funding of education, housing, and other programs. The Senate plan aims for a “balanced approach” to reduce future annual deficits with several billion dollars per year of new special fund revenues to be paid by certain large businesses and several billion dollars of additional cuts, “specifics [of which]…will be developed through the budget process.”
April 15 Taxes Roll In. As of yesterday, April tax collections are proceeding satisfactorily. The largest revenue processing days at the state’s Franchise Tax Board (FTB) are expected today through Monday. It takes a day or more for many payments to go through processing. April collections are very important in determining what revenues will be included in the May Revision and the annual state budget in June. (For daily FTB tax collection updates over the next few days, see my Bluesky or LinkedIn feeds late each afternoon.)
Subcommittees Meet. Both houses’ budget subcommittees continue to meet, and the public can provide input to budget discussions there. Budget hearing videos are archived on the Senate and Assembly sites, as well as CalMatters’ award-winning Digital Democracy site.