Budget Act Concluding for 2024-25

Following weeks of intense negotiation particularly over K-12 and California Community College Proposition 98 funding, the Legislature and Governor Newsom reached agreement on the final 2024-25 Budget Act, which based on current projections, should also address the anticipated shortfall for 2025-26.

The overall 2024-25 spending plan includes $211.5 billion of General Fund, $86.4 billion from other state funds, and $153 billion from the federal government flowing through the state treasury. Despite bridging a $28 billion shortfall on top of the $17 billion early action package addressed in April, the budget preserves $11 billion in the general rainy-day fund if needed following 2025-26.

For Proposition 98, the budget contemplates a modified version of Governor Newsom’s initial IOU funding maneuver to address the shortfall from 2022-23, multi-year deferrals, suspension of the guarantee in 2023-24, and the creation of a Maintenance Factor to be repaid in future years. The complex design over the three-year period 2022-25 and years beyond preserves the constitutional educational funding guarantee while holding K-12 and community colleges harmless for prior deficits. Additionally, it preserves $1.1 billion in Proposition 98 reserves for future use.

The League is grateful to the Administration and Legislature for their confidence in the California Community Colleges through the funding of a 1.07 percent COLA for base apportionments and select categoricals, and 0.5 percent for Growth. The proposed $60 million in one-time funding for nursing expansion remained in the final deal as part of the Strong Workforce Program with additional language to distribute these dollars through a grant program that gives priority to underserved nursing areas or that expand existing ADN-to-BSN partnerships.

Assembly Bill 107 served as the vehicle for the 2024-25 Budget Bill Act, which was passed by the legislature in Mid June. Senate Bill 108 was subsequently used to reflect the final agreement negotiated by the Governor and the Legislature. Senate Bill 153 served as the budget trailer bill for education and Senate Bill 155 serving as the trailer bill for higher education

View the Assembly Floor Report and visit the League’s budget page as more details unfold.