Governor Arnold Schwarzenegger released a plan for revision of the 2009-10 state budget.
(Just a reminder: the state actually already has a 2009-10 budget in place. The 2009-10 May Revision
essentially addresses an emerging budget shortfall in the existing budget plan.)
The May Revision proposal outlines a $15.4 billion budget deficit; that deficit skyrockets to $21.3 billion if the May 19 special election ballot measures fail. Acknowledging the magnitude of the potential deficit and in an effort to communicate the state’s dire fiscal straits to the public, the Department of Finance has prepared both a May Revision and a number of contingency proposals that are offered as solutions if the ballot measures
were to fail.
It is unclear how the Legislature will address the May Revision process, given the unprecedented times.
It has been rumored that a joint legislative conference committee may be convened as early as next week
to begin the budget deliberation process. CSAC will keep counties apprised of all budget-related
activities as soon are aware of them.
This summary outlines the May Revision as presented by the Department of Finance in a factual manner,
without editorial comment. Please keep in mind that there are very few details provided, and we expect
more information to come out as the weeks progress. Furthermore, CSAC will be contacting counties
tomorrow with an action plan to address the significant and severe proposals contained in the Governor’s
Please be sure to note that we have organized our summary in two parts. The first section, under
Proposed May Revision (starting on page 3), describes the Governor’s budget solutions that anticipate a
$15.4 billion deficit in 2009–10. The second section, under Proposed Contingency Plan (starting on page
7), describes the additional cost savings proposals the Governor’s has outlined in the event that the
propositions on the May 19 special election ballot fail.