California’s Budget Provides a Basis for Bill Vetoes

Over the weekend, Governor Gavin Newsom acted on almost 150 bills and brought his veto rate from 3.4% to 11.5%. Among numerous reasons the Governor has taken so far to veto a bill, the status of California’s budget is certainly becoming a key reason for doing so. The following is the language used by the Governor is current veto messages:

In partnership with the Legislature, we enacted d budget that closed a shortfall of more than $30 billion through balanced solutions that avoided deep program cuts and protected education, health care, climate, public safety, and social service programs that are relied on by millions of Californians. This year, however, the Legislature sent me bills outside of this budget process that, if all enacted, would add nearly $19 billion of unaccounted costs in the budget, of which $11 billion would be ongoing. With our state facing continuing economic risk and revenue uncertainty, it is important to remain disciplined when considering bills with significant fiscal implications, such as this measure.

The State estimated a $32.5 billion deficit that needed to be closed by the June Budget Bill enacted prior to the start of the fiscal year on July 1. Despite the collaborative work of the Governor and Legislature on that budget, Governor Newsom explains that all of the bills on this Desk would add $19 billion in unbudgeted costs, and about 58% of that amount would be ongoing costs to the State’s General Fund.

With fewer than 600 bills to go, the Governor will undoubtedly veto more bills. And we can expect the budget situation and unaccounted costs will continue to be a basis for doing so.