Open Policy Discussion

30 Days to Balance Budget

by | Feb 5, 2025 | CA State Government, California Budget Reform

If the state experiences a revenue shortfall or expenditure rise greater than 2% in any given quarter, as measured by any one of the following (Finance Director, Legislative Analyst, Controller), then the Legislature must put aside all other business and bring the budget within balance in 30 days.   If the Legislature has not succeeded, then automatic expenditure cuts across all items (to the extent permitted by the US Constitution), adequate to make up the short-fall should take effect. 


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