June 22, 2024 - SACRAMENTO – Governor Gavin Newsom, Senate President pro Tempore Mike McGuire and Speaker of the Assembly Robert Rivas today announced that they have reached an agreement on the 2024 state budget, which will support the state’s fiscal stability while preserving key programs that Californians depend on.
The agreement maintains the multi-year fiscal structure proposed by the Governor in the May Revision to balance the budget in both 2024-25 and 2025-26, based on current revenue and spending projections. It maintains the responsible budget approach that has benefitted California in recent years, and also protects key safety net, housing, homelessness, and classroom funding while preserving significant budget reserves to address future challenges.
Adding further fiscal protection, part of the agreement proposes additional legislation in August requiring the state to set aside a portion of anticipated surplus funds to be allocated in a subsequent budget act, so that the state does not commit certain amounts of future anticipated revenues until those revenues have been realized. A 2026 constitutional amendment to grow the state’s Rainy Day Fund also will be pursued.
Governor Gavin Newsom: “This agreement sets the state on a path for long-term fiscal stability – addressing the current shortfall and strengthening budget resilience down the road. We’re making sure to preserve programs that serve millions of Californians, including key funding for education, health care, expanded behavioral health services, and combatting homelessness. I’m grateful for the partnership of our legislative leaders in meeting this challenge with balanced solutions that continue to make progress on California’s priorities.”
Senate President pro Tempore Mike McGuire (D-North Coast): “Make no mistake: This is a tough budget year, but it also isn’t the budget situation we were originally fearing. Thanks to hard work, tough decisions, and early actions, we’ve been able to shrink the shortfall, protect our progress, and maintain responsible reserves. This balanced budget helps tackle some of our toughest challenges with resources to combat the homelessness crisis, investments in housing, and funding to fight wildfires and retail theft. And we’ve come together to lift up our kids and public schools with record funding, help the most vulnerable in our communities, and address the climate crisis. We owe a big thanks to our budget chairs, Speaker Rivas, Governor Newsom, and to the people of California for entrusting us with this incredible responsibility.”
Assembly Speaker Robert Rivas (D-Salinas): “The Assembly fought hard to protect the public services that matter most to Californians, and we are delivering a budget that prioritizes affordability and long-term stability. We secured crucial investments to lower housing costs and keep people in their homes, and to sustain essential programs that help vulnerable families thrive. Students will grow and succeed because we kept classroom spending whole. And by balancing our budget this year and next, while preserving half the Rainy Day Fund, we are prepared for the future. Accountability was a cornerstone of this journey, which included 72 Assembly budget hearings and hundreds of hours of public feedback. None of this happens without the dedication of legislative staff, and I extend my deepest gratitude to them, along with my great appreciation for the Governor and Pro Tem. This is a strong budget that reflects our Caucus’ commitment to Californians’ priorities.”
Read an overview of the 2024 state budget agreement here.
Source: Office of the Governor
