Governor Newsom's Budget Revision, Homelessness Policies, and Major Legislative Updates
Sacramento
Governor’s May Revision of his January budget proposal to be released.
Governor Newsom is expected to present the May Revision of his January budget proposal sometime this week. Initially, the January budget estimated a slight surplus, but the May Revision is anticipated to reveal a $10 billion deficit. This projection does not account for potential federal cuts, which could further increase the deficit in the current and future fiscal years.
Stay tuned for a recap of the main provisions included in the revise later this week.
Governor Newsom wants cities and counties to eradicate homeless encampments.
Today, Governor Newsom urged cities and counties to adopt ordinances banning persistent encampments and those blocking sidewalks. He emphasized the need for local officials to offer shelter and resources to homeless individuals before clearing encampments. This follows a U.S. Supreme Court ruling in Grants Pass v. Johnson, which allows cities to ban public camping even without available shelter beds.
Former Vice President Kamala Harris is the front-runner to become California’s next governor, if she wants it.
A poll by UC Berkeley’s Institute of Governmental Studies, co-sponsored by the Los Angeles Times, indicates that former Vice President Kamala Harris is the front-runner for the 2026 California gubernatorial race. Harris has near-universal name recognition among California voters, with 50% viewing her favorably. She is expected to announce her decision to run in late summer.
Major hearing on the state of the Arts, Culture, and Humanities in California.
On Wednesday, May 14, the Joint Committee on the Arts will hold a hearing to discuss the impact of federal policies under the Trump Administration on arts, culture, and humanities in California. The committee will hear from Danielle Brazell, Executive Director for the California Arts Council; Greg Lucas, California State Librarian; Erin Harkey, CEO for the Americans for the Arts; and Rick Noguchi, CEO of California Humanities, among others.
Legislative Calendar
May 14: Deadline for the governor to submit the May Revision
May 14: Joint Arts Committee Hearing on the State of the Arts: How Current Federal Policies Are Impacting Arts, Culture, and the Humanities in California
May 26: Memorial Day. Legislature is not in session.
June 6: Last day for Senate and Assembly to pass bills introduced in their chambers
June 15: Budget bill must be passed by midnight.
June 30: Governor must sign the budget by midnight.
July 4: Independence Day. Legislature is not in session.
July 18 – August 17: Summer recess.
September 12 – January 5, 2026: Interim recess of the 2025-2026 session of the California State Legislature.
October 15: Last day for the governor to sign or veto bills passed before September 12.
Washington D.C.
House Republicans Release Tax Plan
The House Ways and Means Committee released a 389-page tax plan that proposes:
Cutting Medicaid spending by imposing new restrictions on beneficiaries, including work requirements and more frequent eligibility checks.
Eliminating taxes on tips and overtime.
Making the 2017 income tax rate reductions permanent.
House GOP leaders aim to move the bill through the House by Memorial Day and send it to the Senate for approval, with the goal of getting it to President Trump’s desk by the July 4th recess.
The President Releases Fiscal Year 2026 “Skinny Budget”
President Trump recently released his fiscal year 2026 discretionary budget request, outlining high-level spending priorities. The budget proposes increased spending for defense and homeland security while cutting $163 billion (22.6%) from education programs, climate assistance, research funding, foreign aid, and staffing to offset the proposed increases.
Highlights of the “Skinny Budget”:
Cuts Medicare and Medicaid Services by $674 million.
Cuts 55% of the Environmental Protection Agency (EPA) budget.
Cuts the Internal Revenue Service (IRS) budget by $2.5 billion.
Cuts the Interior Department budget by 30.5%, including significant reductions to the Bureau of Land Management and tribal programs.
Cuts the National Science Foundation’s budget by more than 50%.
Eliminates AmeriCorps, the Institute of Peace, and the Woodrow Wilson Center.
Cuts the National Institutes of Health by $18 billion.
Cuts the Department of Energy’s annual budget by $4.7 billion, largely affecting renewable energy and climate change programs.
Cancels $15 billion in unplanned and unobligated Infrastructure Investment and Jobs Act (IIJA) funding previously allocated to the Department of Energy.
Stay tuned for more updates on these developments.
