On Thursday, Governor Gavin Newsom unveiled his May Revision of the 2020-21 State Budget (May Revision). Traditionally, the Governor’s May Revision is an exercise to more accurately reflect revenue and expenditure projections, and then apply those projections to the overall spending package as proposed in January. However, this year’s May Revision comes amid the coronavirus (COVID-19) pandemic and a fiscal situation that saw a $5.6 billion surplus turn into a projected $54.3 billion state budget deficit in a four-month span. The May Revision reflects a strategy to balance the budget by cancelling previously proposed expenditures and utilizing loans, federal funds, reserves, and other new revenue sources to close the estimated deficit.
Governor Newsom highlighted the careful prioritization that the extreme change from January to May would necessitate for COVID-19 resources and recovery. These priorities include supporting job creation and economic recovery, ensuring schools can reopen, and expanding programs for the lowest income families, as well as continue significant investments in wildfire mitigation efforts.
The Rural Rundown, RCRC’s analysis of the Governor’s 2020-21 May Revision of the State Budget, can be accessed here.