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California Leaders Announce 2024 State Budget Agreement

For immediate release:

SACRAMENTO, CA— On Saturday, Assembly Speaker Robert Rivas, Governor Gavin Newsom and Senate President Pro Tem Mike McGuire announced a three-party budget agreement ahead of the June 30 constitutional deadline.

What Speaker Robert Rivas (D-Salinas) Says

“The Assembly fought hard to protect the public services that matter most to Californians, and we are delivering a budget that prioritizes affordability and long-term stability. We secured crucial investments to lower housing costs and keep people in their homes, and to sustain essential programs that help vulnerable families thrive. Students will grow and succeed because we kept classroom spending whole. And by balancing our budget this year and next, while preserving half the rainy day fund, we are prepared for the future. Accountability was a cornerstone of this journey, which included 72 Assembly budget hearings and hundreds of hours of public feedback. None of this happens without the dedication of legislative staff, and I extend my deepest gratitude to them, along with my great appreciation for the Governor and Pro Tem. This is a strong budget that reflects our Caucus’ commitment to Californians’ priorities.”

What Governor Gavin Newsom Says

“This agreement sets the state on a path for long-term fiscal stability – addressing the current shortfall and strengthening budget resilience down the road. We’re making sure to preserve programs that serve millions of Californians, including key funding for education, health care, expanded behavioral health services, and combatting homelessness.  I’m grateful for the partnership of our legislative leaders in meeting this challenge with balanced solutions that continue to make progress on California’s priorities.”

What Senate President Pro Tem Mike McGuire (D-North Coast) Says

“Make no mistake: This is a tough budget year, but it also isn’t the budget situation we were originally fearing. Thanks to hard work, tough decisions, and early actions, we’ve been able to shrink the shortfall, protect our progress, and maintain responsible reserves. This balanced budget helps tackle some of our toughest challenges with resources to combat the homelessness crisis, investments in housing, and funding to fight wildfires and retail theft. And we’ve come together to lift up our kids and public schools with record funding, help the most vulnerable in our communities, and address the climate crisis. We owe a big thanks to our budget chairs, Speaker Rivas, Governor Newsom, and to the people of California for entrusting us with this incredible responsibility.”

What Assembly Budget Chair Jesse Gabriel (D-Encino) Says

“Today’s budget agreement is proof that we can be both compassionate and fiscally responsible. I am proud that this budget protects classroom funding, critical safety net programs, and carefully targeted investments in key housing and homelessness programs. At the same time, we recognize that the people of California expect the government to tighten its belt and balance the budget just like families do every month. That is why we maintain significant reserves and are demanding smarter spending and real accountability. I am grateful to Speaker Rivas, our talented Budget Subcommittee Chairs, my Assembly colleagues, Governor Newsom, and our partners in the Senate for their hard work and thoughtful leadership in crafting this agreement.”

A Budget Journey Focused on Accountability

Last November, as experts projected budget deficits over the next several years, Speaker Rivas appointed a new leadership team, helmed by Budget Chair Assemblymember Jesse Gabriel, and created a new Budget Subcommittee focused on oversight of spending and chaired by Assemblymember Avelino Valencia (D-Anaheim).

When the Legislature reconvened in January, Speaker Rivas strongly urged Members to “commit to accountability” and “look in the rearview mirror” at past spending, so as to ensure the state’s historic investments in past years are implemented responsibly and efficiently. Under Speaker Rivas’ leadership, the Assembly immediately went to work, holding 72  public hearings this year as part of a robust and transparent budget process with dozens of hours of public engagement and feedback.

The Assembly listened to Californians and, based on their ideas and input, the Democratic Caucus fought hard to protect funding for the programs that matter most to hard-working residents, including those that lower the costs of housing, address the homelessness crisis, and preserve safety net programs and classroom spending.

Families across the state are expected to live within their means, and the Speaker believes state government must do the same, as these are taxpayers’ dollars at work. To that end, this budget includes several billions of dollars in cuts to the state operations budget.

In addition, the Assembly secured long-term fixes that begin to address future budget deficits, balancing it through the 2025-26 fiscal year. 

This budget agreement also protects the state reserves, keeping about half of the state’s rainy-day fund past 2025-26.

Next Steps

The Legislature is expected to take up the final budget agreement and accompanying trailer bills during the week of June 24. 

For additional information, please contact Press Secretary Cynthia Moreno at


Speaker of the Assembly Robert Rivas represents California’s 29th Assembly District, which includes all of San Benito County and portions of Monterey, Santa Cruz, and Santa Clara Counties. For a full biography of Speaker Rivas, click here.