Legislature Passes “Workload” Budget
The California Legislature passed a placeholder “workload” budget to the Governor on Monday, June 15, the Constitutional deadline to pass a balanced budget. The Governor has until July 1 to sign the budget, and in the meantime, negotiations have continued between the Legislature and Governor’s office on how the budget will be implemented. Early this week the Governor and Legislative leadership announced they’ve reached agreement on a final Budget deal, for which the Legislature will need to pass a second Budget bill reflecting the agreement in order for the Governor to sign it by July 1st. The uniqueness of this year’s circumstances will have a significant impact on the ongoing budget process, which will continue through the summer. In particular, because much of the Legislature’s approved budget plan depends on additional federal aid, further legislation will likely be needed to account for the availability of additional funding, as well as to adjust for the actual revenues from personal income tax receipts following the July 15 extended tax deadline. Additionally, special non-general fund expenditures, such as the Greenhouse Gas Reduction Fund, will also be determined later this summer and not as a part of the “workload” budget.