What Are the Key Dates in Law for the State Budget?

Many Capitol observers believe all of the relevant dates applicable to the state’s budget are contained in the California Constitution. However, there are only two dates found in the state Constitution. And, they are both found in Article IV dealing with the legislative branch of state government. So, which dates are constitutional requirements?

Article IV, Section 12(a) specifies that, “Within the first 10 days of each calendar year, the Governor shall submit to the Legislature, with an explanatory message, a budget for the ensuing fiscal year containing itemized statements for recommended state expenditures and estimated state revenues.” This is the first step in the calendar year for the state budget: the Governor submits their budget proposal to the Legislature and it is often referred to as the “Jan 10 budget,” because it is due no later than January 10 for introduction.

Section 12(c)(3) provides, “The Legislature shall pass the budget bill by midnight on June 15 of each year.” This is the deadline for passing the budget bill but it does not apply to the budget bill junior or budget trailer bills. These are the only two dates related to the state budget that are set forth in the state Constitution. Many are surprised that neither the fiscal year nor the May Revise are constitutional requirements.

Turning to the California Government Code, Section 13290 states, “The fiscal year shall commence on the first day of July.” While the federal government’s fiscal year is October 1 – September 30, the state’s fiscal year is July 1 – June 30. This is a statutory requirement set by the Legislature in 1970.

In addition, Government Code Section 13305(e) requires, “The Director of Finance shall provide to the Legislature, on or before May 14 of each year, all of the following:” Note also that the requirement for submitting the May Budget Revision is on the DOF Director, and not the Governor.

Government Code Section 13305(b) specifies: “The Director of Finance shall provide to the Legislature, on or before February 1 of each year, all proposed statutory changes, as prepared by the Legislative Counsel, that are necessary to implement the Governor’s Budget…” This is the requirement that all trailer bill language must be provided by February 1, which the DOF does by placing it on their website.

Section 13305(c) states: “The Director of Finance shall provide to the Legislature, on or before April 1 of each year, all proposed adjustments to the Governor’s Budget except as specified…” This is the requirement for Finance Letters to be presented to the Legislature.

Section 13305(d) requires “The Director of Finance shall provide to the Legislature, on or before May 1 of each year, all proposed adjustments to the Governor’s Budget in appropriations for capital outlay.”