Budget Process

November to January

February to Mid-May

Mid-May to June 1

June 1 to July 1

July to End of Legislative Session

Annual budget process begins
 

  • In November, the Legislative Analyst's Office (LAO) publishes annual “Fiscal Outlook” which provides an updated multi-year economic forecast for the upcoming budget year and the following three fiscal years.  
  • By January 10, the Governor submits proposed budget to the Legislature, based on the Department of Finance’s (DOF) economic forecast and budget proposals submitted by departments and agencies to the DOF.  
  • By January 10, budget committee chairs introduce the Governor's budget in both the Assembly and Senate as separate budget bills.
  • The Senate Committee on Budget and Fiscal Review provides a detailed summary of the Governor’s proposed budget for members and staff.
  • The LAO provides a very comprehensive analysis of all areas of the Governor's proposed budget.
     

Budget Plan Development and Public Hearing Process
 

  • The five subcommittees to the Senate Committee on Budget and Fiscal Review – divided by issue areas – hold weekly public hearings on budget proposals from the Governor, the Senate, the LAO, and stakeholders.  
  • The subcommittee hearings also provide important oversight of existing government programs.

     

Budget Plans Are Finalized
 

  • By May 14, the Governor is required to present the May Revision, which updates the Governor’s proposed budget based on updated economic forecasts and makes various other adjustments to the original proposed budget.
  • Much of what occurred from January through mid-May is repeated in a very short timeframe:
    • The Senate Committee on Budget and Fiscal Review and the LAO provide summaries and analysis.
    • Subcommittees hold multiple hearings on the updated Governor proposals, as well as updated Senate proposals.
  • By approximately June 1, the Senate Committee on Budget and Fiscal Review finalizes the Senate’s Version of the Budget, which includes actions on the Governor’s proposals as well as other Senate priorities. 
     

Final Budget Approval
 

  • By June 15, the Senate and Assembly agree on budget compromise to meet the constitutional deadline to pass a balanced budget.
  • If the Governor is not in agreement with the budget passed, the Legislature and Governor negotiate to reach agreement of the final version of the budget. During the 12-day period, the Governor has to sign or veto the budget passed by the Legislature.
  • The negotiation also includes the details of numerous Budget Trailer Bills, which make the statutory changes needed to implement the Budget Bill.
  • The Final Version of the Budget package, including the budget bill and trailer bills, is typically passed by June 27 and signed into law by the Governor soon thereafter.
  • The new fiscal year begins July 1

     

Follow-up and Clean-up
 

  • There are typically a handful of budget issues that were not fully resolved prior to the enactment of the budget and are instead finalized later in the legislative session.  
  • This process includes negotiations among the Senate, Assembly and the Governor, as wekk as additional public hearings prior to final floor votes.