The Budget Process

After having received the governor's May Revise budget proposal for 2026-27, the two houses of the legislature have been formulating their own versions. Under the state constitution, the legislature must pass a budget by June 15 or be penalized. But it is left to the legislature to define what a "budget" is, thanks to court decisions. So it is possible for discussions with the governor to continue after that date, if the legislature passes something labeled a budget. 

Because Democrats dominate the legislature, it is essentially Democrats that matter in the process. Senate Democrats have produced a budget document that is mainly a shopping list of proposals without a complete tabular presentation. It appears from the document that reserves will be falling under their plan (i.e., the budget is in deficit). 

The higher ed portion doesn't mention UC and mainly concerns adjustments for community colleges. It does contain an increase in the Middle Class Scholarship program which has some benefit for UC indirectly. You can find the Senate Democrats' document at:

https://sbud.senate.ca.gov/system/files/2026-05/may-28-2026-foundation-for-the-future-senate-version-of-the-budget_0.pdf.

In theory, the legislature could pass a budget and the governor could veto it. That is not going to happen. The governor could use his line-item veto to trim some elements. However, what is more likely to occur is that the two houses and the governor will get together, reconcile differences, and then enact a budget, even if the actual process extends beyond June 15.