The Legislature's Budget

We are coming to the point where the legislature must enact something it calls a state budget for 2024-25. Generally, because of Democratic dominance in the legislature, the legislative leaders make a deal with the governor that looks something like the May Revise but features compromises that tilt toward legislative desires.

As we noted in a prior posting, the legislature is more of a mind to keep the UC compact with the governor than the governor is. We will have to see how that works out. But the table below shows where the legisature currently is at a macro level compared with the May Revise.

Basically the legislature is assuming we will spend somewhat less than the governor estimates in the May Revise in the current year and that there will be somewhat more revenue next year. Even so, when we look at the total change in all reserves related to the General Fund, the deficit proposed by the legislature is somewhat bigger than the governor's. 

Note that all these figures are estimates and forecasts.