On Wednesday, May 14th, Governor Newson released his Administration’s May Revision of the 2025-26 State Budget. This revision is the next step in the State’s budget negotiations with lawmakers, who must pass a budget by June 15 for the July 1 start of the 2025-2026 fiscal year. RCRC’s Rural Rundown captures highlights of the latest proposal as it relates to RCRC member counties.
The May Revision proposes a budget of $226 billion, down from the $229 billion proposed in January, and reflects a $12 billion budget shortfall. The revenue forecast has been downgraded as well and is projected to be lower by $5.2 billion than originally predicted in the three-year budget window that began last year. While the Governor’s 2025-26 May Revision does not reflect a recession, it does predict several risk factors that could have negative impacts on California’s economy and revenues.
Learn more in RCRC’s Rural Rundown here.