During a recent government meeting, California lawmakers discussed three key bills related to the state budget: AB 107, the 2024 Budget Act; AB 154, which addresses education finance and the suspension of Proposition 98; and AB 167, concerning taxation. The meeting underscored the urgency of passing a balanced budget by the constitutionally mandated deadline of June 15.

The proposed budget, building on the governor's earlier proposals, outlines approximately $293 billion in total spending, with $211.3 billion sourced from the general fund. It aims to close budget gaps for the fiscal years 2024-2025 and 2025-2026, while maintaining a safety net amid ongoing economic uncertainties. Lawmakers highlighted the importance of having a budget reserve, contrasting the current situation with the severe deficits experienced during the Great Recession.

Key components of the budget include significant funding for education, with a focus on protecting public school financing. The suspension of Proposition 98 is intended to facilitate continued investment in K-14 education, which has seen a 40% increase in funding since 2017. The budget also proposes changes to taxation, including the suspension of net operating loss deductions and limitations on business credits, aimed at generating additional revenue.

While the budget is characterized as balanced, some lawmakers expressed concerns about its sustainability, warning of potential deficits in future years. The Legislative Analyst's Office noted that the budget package would maintain approximately $23 billion in reserves, although some categories of reserves would see reductions.

Overall, the discussions reflected a commitment to advancing education funding and addressing fiscal challenges, while also acknowledging the complexities and potential pitfalls of the proposed budget measures. The meeting concluded with a call for continued collaboration between the legislature and the governor's office to finalize the budget.