Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Budget analysts urge caution as governor proposes delayed Prop.98 "settle up" to manage revenue volatility
Summary
Department of Finance and Legislative Analyst Office described Proposition 98 calculations and a governor proposal to delay $1.6 billion of 2024‑25 Prop.98 settle‑up into 2025‑26. Analysts outlined alternatives and warned of high sensitivity of the guarantee to revenue swings.
The Senate Budget Subcommittee No. 1 on Education reviewed the state’s Proposition 98 forecast and policy options on March 13, with Department of Finance (DOF) and Legislative Analyst’s Office (LAO) officials warning that volatile revenue sources make 2024‑25 funding decisions unusually risky.
DOF overview and figures
Alex Shope of the Department of Finance told the subcommittee the governor’s budget projects the Proposition 98 guarantee for fiscal year 2025‑26 at about $118.9 billion and shows roughly $7.5 billion of growth across 2024‑25 and 2025‑26 compared with the current‑year enacted budget. Shope said the administration proposes treating about $1.6 billion of 2024‑25 settle‑up as a timing item intended to avoid over‑appropriation should revenue soften between the governor’s January proposal and the May revision.
“The 1.6 billion is an estimate that reflects uncertainty in revenue estimates and could be revised at the May revision,” DOF staff told the…
Already have an account? Log in
Subscribe to keep reading
Unlock the rest of this article — and every article on Citizen Portal.
- Unlimited articles
- AI-powered breakdowns of topics, speakers, decisions, and budgets
- Instant alerts when your location has a new meeting
- Follow topics and more locations
- 1,000 AI Insights / month, plus AI Chat
