While we did not get many details regarding TK-14 funding or programs, the Governor did indicate that state revenues are up by $16.5 billion over expectations in the last budget act. The Governor was careful to note that this revenue estimate is a “moment in time” estimate that will change before the budget year ends. The Administration’s revenue projection is significantly higher than the assessment from the Legislative Analyst’s Office (LAO) from late November, which had revenues up by about $7 billion.
Again, without details, the Governor noted that the Proposition Guarantee for 2025-26 is projected to be $118.9 billion. That puts the Guarantee at just over $2 billion higher than the LAO had projected in November. As you can see from our prior update on the LAO’s fiscal outlook this is likely to mean that, after providing an estimated 2.43% COLA, the state will have at least several billion dollars to spend on new TK-14 priorities.
The full budget will be released no later than Friday. We will provide many more details at that time, and also hope to see you at our Budget Workshops.
Thanks,
Abe
Abe Hajela