January 16, 2025

Last Friday, the California Department of Finance presented the Governor’s proposed state budget for 2025-26 along with the state’s updated revenue forecast. Shortly thereafter, the CSAC legislative affairs team issued a Budget Action Bulletin highlighting the most significant information for county governments.

Throughout 2025, CSAC will advocate on behalf of counties to empower and elevate our collective county voice. CSAC legislative affairs staff will work diligently with the administration and state lawmakers, as well as in coalition with other local government partners, to achieve a prudent budget plan that enables counties to continue to support all Californians.

To many, the budget process is opaque and confusing. To help clarify the process, we drafted some frequently requested information about California’s budget process enigma:

1. What is so special about January 10?

The California Constitution requires that the Governor submit a budget proposal for the upcoming fiscal year to the Legislature by January 10 annually (Article IV, Section 12). The budget is submitted in the form of a budget bill (legislation) that itemizes proposed state expenditures. This proposal is often called the “Governor’s Budget” and is the starting point for the budget development and negotiation process that concludes in June, just before the beginning of the new state fiscal year on July 1. As the state’s fiscal year begins on July 1 and ends on June 30 every year, passing a balanced and responsible budget by June 30 is imperative. At the time this was written, two budget bills had been introduced that reflected the Governor’s budget proposal: AB 227 (Gabriel) and SB 65 (Wiener).

2. So, what happens after January 10? 

After January 10, the budget committees in both houses of the Legislature will schedule hearings to discuss the Governor’s proposed plan for the 2025-26 state budget. Legislative budget committees also include several subcommittees to address specific policy areas of the budget (See: Senate Budget and Fiscal Review Committee and Assembly Committee on Budget). CSAC will attend these hearings and submit letters to the Governor and legislative leaders detailing how to structure the state budget in the best interests of California’s residents.

3. What are “trailer bills” and where can I find the trailer bill language? 

Trailer bills accompany the main budget bill by enacting any corresponding changes to state law necessary to implement the programs and proposals in the budget. While the budget bill includes expenditure authority and sparse provisional language regarding the use of funds, the trailer bills include implementation language for specific appropriations. These bills are called “trailer” bills because they are not subject to the same deadlines as the budget proposal and therefore trail after the main budget bill is introduced. Pursuant to state law, all trailer bill language necessary to implement and accompany the Governor’s proposed state budget is due to the Legislature by February 1 annually (Gov Code Section 13308). CSAC has provided additional insight on the unique trailer bill process over the years in our weekly news bulletin.

The Department of Finance maintains a list of trailer bill language proposals that accompany the Administration’s budget proposals on their website (trailer bill language website). CSAC legislative staff will analyze the contents of trailer bills for their impact to county government and will publish more information and commentary on specific subjects in the coming weeks and months.

4. Where can I find more information about the state budget?

The Legislative Analyst’s Office (LAO) provides nonpartisan fiscal and policy advice to the California Legislature, including analyzing the Governor’s Budget and offering recommendations to the Legislature. The LAO maintains a webpage of publications on the state’s budget condition and the budget for specific policy areas. In addition, the LAO’s annual Fiscal Outlook publication provides an independent assessment of the California state budget condition for the upcoming fiscal year: The 2025-26 Budget: California’s Fiscal Outlook. CSAC summarized the LAO’s Fiscal Outlook and highlighted information relevant for county governments in our weekly bulletin in December.

5. How can I engage with CSAC’s budget advocacy?

CSAC is already taking proactive steps to ensure this year’s budget prioritizes the services and programs that Californians rely on most. As county leaders, this is the moment to make our collective voices heard on the issues that matter most to our communities, ensuring our feedback is considered during budget deliberations. Here’s how you can join the effort:

• Contact your legislators to discuss how this budget impacts your county.
• Join the CSAC Speakers Bureau to testify before the Legislature, participate in press events, and provide rapid media responses. Enroll in the Speakers Bureau here.

CSAC will continue to publish comprehensive updates on the state budget development process in our weekly bulletin. In the interim, please contact CSAC legislative affairs staff with questions about specific policy areas.