California’s Legislature Drafts Budget Largely Protective of Transportation and Infrastructure Funding
The state Senate and Assembly passed their version of a budget to move forward to Governor Newsom, just in time for the state’s June 15 legislative budget deadline. The agreement is a “framework of a balanced budget,” with outstanding issues and further detail to be addressed in later budget trailer bills.
The legislature’s budget holds transportation and infrastructure funding harmless from the effects of the COVID-19 recession. In fact, the budget proposal is unified in rejecting the governor’s proposal to transfer interest earned on the highway and road account to the general fund, retaining about $130 million of funding for highway construction.
California's Constitution requires the state budget to be passed by the legislature and onto the governor by June 15 and signed by the Governor by July 1. Earlier this month, both houses worked together and announced its unified approach on the budget. The governor and legislature are expected to continue to negotiate and will likely reach an agreement after the budget deadline given the difficulty presented by deferred tax collection from April 15 to July 15.
AGC will continue to monitor potential impacts to the construction industry. The latest a budget agreement can be reached is June 28 to comply with the 72 hour “in-print” rule.