Frequently Asked Questions about the May Budget Revision

What is the “May Revision”? The Governor’s Department of Finance explains that the May Revision reflects “changes to the Governor’s Proposed Budget based upon the latest economic forecasts.” The Office of Legislative Counsel, in its Glossary of terms, explains the May Revise as “occurring in early May, [it is] the updated estimate of revenues and expenditures that replaces the estimates contained in the Governor’s budget submitted in January.”

What is the correct term to use? Around the State Capitol, we hear about the “May Revision,” “May Revise,” or “May Budget Revision.” At least five sections of the California Government Code use the term “May Revision,” while one section uses “May budget revision.”

Who issues the May Budget Revision? The California Governor releases the May Revise through the Department of Finance.

Where is the requirement for the Governor to issue the May Revision found in state law? This is actually a trick question. First, the requirement is not imposed on the Governor. Second, the requirement is not where you would expect it to be. There are no provisions related to the state budget in Article V of the state Constitution, which deals with the executive branch of state government and sets forth the powers and duties of the Governor of California.

Moreover, the budget-related provisions are actually found in Article IV of the state Constitution, which sets forth the powers and duties of the legislative branch of government. However, the May Budget Revision is not found there either. 

The answer is there is neither a constitutional nor statutory requirement for the Governor to issue a May Revision to the January budget proposal. However, there is a statutory requirement on the Director of Finance to do so. It is contained in Government Code Section 13308.

What is the DOF Director required to do in January? Subdivision (a)(1) of Section 13308 provides, at the time the Governor submits the January budget proposal, “the Director of Finance shall submit to the Legislature total recommended state General Fund expenditures and estimated, including any proposed, state General Fund revenues….”

What is the DOF Director required to do by early February? In subdivision (b), the Director of Finance is required to “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 why the Department of Finance provides its proposed “trailer bill” language on the DOF website by the end of January.

What is the DOF Director required to do by early May? In subdivision (d), the Director of Finance is required to “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.” This requirement is not the May Revision; instead, it relates to capital outlay proposals.

What is the statutory requirement for the May Budget Revision? In subdivision (e), the Director of Finance is required to “provide to the Legislature, on or before May 14 of each year, all of the following:

(1) An estimate of General Fund revenues for the current fiscal year and for the ensuing fiscal year.

(2) Any proposals to reduce expenditures to reflect updated revenue estimates.

(3) All proposed adjustments to the Governor’s Budget that are necessary to reflect updated estimates of state funding required pursuant to Section 8 of Article XVI of the California Constitution, or to reflect caseload enrollment or population changes.”