Governor’s May Revise: SB 90 Gets Funding Increase

On Wednesday, May 12, Governor Gavin Newsom released his May Revision to his January 2025 Budget Proposal for Fiscal Year 2025-26.  Despite the fact that the California State Budget is now facing a $12 billion deficit for FY 2025-26, SB 90/State-Mandated Cost did not receive any funding cuts as a result of the budget deficit.  In fact, the funding described in January Budget Proposal was increased by $2.4 million from $94.9 million to $97.3 million.

The primary impetus for this increase ($1.9 million) from January was to ensure that State-Mandated Cost funding would properly meet anticipated claim payments for many of the Fiscal Year 2023-24 Annual Claims filed this past February.  An additional $454,000 was also added to settle the outstanding balance for the FY 2022-23 Annual Program “Administrative License Suspension: Per Se” as that program’s payments only received a 79.1% pro rata payment in mid-August 2024.