How to participate in the California budget process

Before we discuss specifics of participation in the budget process in California, we need to understand the basics of the budget process in this state.

First, where do we find the rules governing the budget process? First in the Constitution, followed by the Government Code, and then a few in the Legislature’s internal rules. The budget process, like the broader legislative process, is also dependent on the calendar and specified deadlines.

Some of these rules are in the Constitution, while others are in the Government Code. For example, two major budget dates are found in the Constitution: January 10 (deadline for the Governor to introduce his or her budget proposal) and June 15 (deadline for the Legislature to pass the budget), while two key budget dates are found in the Government Code: May 14 (the deadline for the May Budget Revision by DOF) and July 1 (the start of the state’s fiscal year).

The state budget process on paper is similar to the legislative process; however, it is different in practical terms. The full budget committees of the Senate and Assembly act mostly as the final arbiter of their respective houses when it comes to finalizing the actions of their subcommittees. And, obviously, the legislative leaders can and do impact “final” budget decisions.

But the budget bill is rarely modified on either floor of the Legislature. Instead, the five Senate budget subcommittees and the seven Assembly budget subcommittees act as both policy and fiscal committees in determining budget actions. Once the Governor’s budget proposal is released by January 10, both budget committees’ staff prepare a summary overview of the Governor’s budget; a similar document is prepared by the Legislative Analyst’s Office (LAO).

In early March, the Assembly and Senate subcommittees begin holding hearings and taking testimony from the Department of Finance (DOF), LAO, respective state agencies and departments, and members of the public. This is a critical time to advocate for your interests or those of your client on specific budget requests. Most of the work on the budget occurs at the subcommittee level.

Prior to these hearings, the budget committee staff members examine the budget proposals and prepare agendas that include an explanation of the Governor’s budget proposals and the staff’s recommendations whether to accept, modify, hold open, or reject the budget proposals. Many of the Governor’s budget proposals are “held open” for further discussions and a vote (most often until after the May Revision is released). The minority party staff prepare similar information for their members.

By the time the Governor’s May Revise of the budget is released in mid-May, after April tax receipts are known, the subcommittees must conclude their deliberations within two weeks or so. As such, it is hard for the public to have much more input unless there is an entirely new budget proposal. Therefore, it is important that communication be done early in the budget process.

Although the public budget process is usually just over five months in length, the development of the state budget begins shortly after the prior version takes effect. California’s fiscal year begins on July 1 (the state’s fiscal year ends on the following June 30). By way of comparison, the federal government’s fiscal year runs October 1 through September 30.

State departments must submit their budget proposals to their respective agencies, who in turn submit their proposals to the Department of Finance. This occurs in the early fall. After the DOF makes its recommendations, the Governor and his staff will make final determinations in consultation with DOF in time for release of the Governor’s budget by the January 10 deadline.

The Governor’s budget is on the DOF website under the E-BUDGET tab. The budget is often 1,300 pages in length and contains the details of the Governor’s proposed budget spending for the upcoming fiscal year. Each budget item is assigned a 10-digit code and includes the state department, purpose and funding source.

In turning to how to best participate in the state budget process, it is similar to your possible participation in the legislative process. While the budget process has its own terminology, and a concurrent process in the Legislature, it is still important to understand the procedural rules, the players in the process, and the policy areas within the budget process.

Do not forget two key players beyond the Governor and the Legislature in the budget process: Department of Finance (the Governor’s fiscal advisor) and the Legislative Analyst’s Office (the Legislature’s fiscal advisor). The staff of both DOF and LAO play a critical role to the development and analysis of the state budget, budget bills junior, and trailer bills. You should consult with their staff about the budget proposal you support or oppose.

Probably the best place to participate in the budget process is at the subcommittee level and its hearing. Before each hearing, subcommittee staff prepare extensive agendas for the hearings that detail the Governor’s proposals and alternatives. The agendas are available to anyone on the committee websites.

During these subcommittee hearings, the Legislature has its broadest discussion of budget alternatives and they likely are to make changes to the original proposed budget. State agencies, the Governor’s Department of Finance, and the LAO appear before these subcommittees with their recommendations. Interested persons may also appear before subcommittees. Prior to these subcommittee hearings, meet with budget committee staff, DOF, and LAO about your support or opposition.

Just like in the legislative process, the best way to participate in the budget process is to communicate. Early communication is key and, if you are concerned about budget issues, then it is incumbent upon you or your organization to let your legislator and their staff know. In that regard, you can call or write your legislator on budget issues. You can also testify in a budget subcommittee.

After these subcommittee hearings, there is limited public opportunities. One remaining opportunity is at the full Budget Committee hearings. However, usually testimony is held at the very end of the hearing, with perhaps one minute per individual. Thereafter, there are no other public hearings.

Support for The Micheli Files is provided by The McGeorge School of Law Capital Center for Law & Policy.