On Friday, May 10th, Governor Newson released his Administration’s May Revision of the 2024-25 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 2023-2024 fiscal year. While RCRC expects significant additional details on the Governor's May Revision next week, RCRC's Rural Rundown captures highlights of the latest proposal as it relates to RCRC member counties. 

The Governor's 2024-25 May Revision proposes approximately $288 in spending ($201 billion General Fund) and reflects a $27.6 billion budget shortfall.  The Governor projected a $37.9 billion budget shortfall in January, which was reduced by $17.3 billion in budget adjustments adopted in April; however, revenues have fallen short of January projections by an additional $7 billion, thereby leaving a $27.6 billion remaining budget gap.

The May Revision would eliminate $300M ($200M earmarked for counties) in ongoing Future of Public Health funding for our state and local public health infrastructure, $75.6M in one-time Public Health Equity and Readiness Opportunity (PublicHERO) workforce development and training funding, and proposes zero funding for CalCONNECT contact tracing and disease investigation infrastructure. The budget would turn back the clock on public health readiness and infrastructure that RCRC, along with our county partners, strongly advocated for in 2022.

The Governor’s 2024-25 May Revision proposes:

  • Spreading out the use of $12.2 billion in Budget Stabilization Act revenues over two fiscal years.
  • Withdrawing $8.4 billion from the Public School System Stabilization Account.
  • $10.7 billion in reductions.
  • $2 billion in revenues and borrowing.
  • $520 million in delays.
  • $3.9 billion in fund shifts.

Learn more in RCRC's Rural Rundown here.