Budget & Legislation

Budget Update

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State Capitol

State Budget Update 

  • 2024/2025 May Revise

Governor Newsom released the May Revise on Friday, May 10th. He provided a general outline and some details of his proposed budget revisions - known as the "May Revise" to the 2024-2025 State Budget proposal that he submitted to the Legislature on January 10th with budget solutions covering two budget years. The Governor proposes solving two years of budget problems in a single budget, tightening the state’s belt to get the budget back to normal.

The Governor said that by addressing the shortfall for this budget year - and next year - the State is eliminating the 2024-2025 deficit and eliminating a projected deficit for the 2025-2026 budget year that is $27.6 billion and $28.4 billion respectively.

When Gov. Gavin Newsom proposed a 2024-25 state budget in January, he declared that the state faced a $38 billion deficit. However, the state legislative analyst Gabe Petek, a month later increased his deficit estimate to $73 billion.

Read more on the 2024-25 May Revise along with the Department of Finance revised list of budget solutions.

  • 2024/2025 January Release of Proposed Budget

Governor Gavin Newsom released his proposed 2024-2025 State Budget plan that totals $291.5 billion that projects a budget shortfall of $37.86 billion. The Governor proposes to close this shortfall through the following solutions:

  • $7.2 billion in savings due to delay or deferred implementation of several major initiatives;
  • $11.9 billion in freezing, "belt-tightening" or stretching a lot of the state spending, and also reductions and fund shifts and 
  • $18.8 billion from the state reserves, revenue and borrowing

The Governor's release of his proposed spending plan begins the long yearly state budget process, with legislative budget subcommittee hearings beginning in February. Then the May Revise will be released in mid-May, which updates budget numbers and proposes revisions to his January 10th proposed budget. Then passage of the budget plan in mid-June by the Legislature, which eventually lands on the Governor’s desk for signature implementing the 24/25 Budget on July 1st. 

The Budget for the Department of Developmental Services (DDS) includes $15.3 billion ($10 billion General Fund) and estimates that approximately 458,000 individuals will receive services in 2024-25. Over the next year, DDS will develop a Master Plan for Developmental Services to establish a more quality-driven and consumer-friendly experience for individuals and families receiving developmental services. DDS will also convene a workgroup of key stakeholders to inform the development of the Plan, specifically focusing on a program management system that will be used to collect and analyze data and make recommendations that emphasize quality, equity, and outcomes, while improving regional center accountability.

This Master Plan will outline shared goals of developing a system that is person-centered, equity-focused, and data-driven while maximizing the effectiveness of recent investments to improve outcomes for consumers.

How will this impact the Department of Developmental Services and how it will address the budget shortfall? The Budget proposes General Fund solutions to achieve a balanced budget that includes the following:

  • Service Provider Rate Reform- Due to resource availability, returns full implementation of service provider rate reform to the original timeline of July 1, 2025, while maintaining focus on improving outcomes and quality of services through the Quality Incentive Program. That original July 2025 implementation date was moved up to July 1, 2024, in the 2022-2023 State Budget as part of the overall budget deal reached that year between the Legislature and the Governor. That implementation now is being proposed to go back to the original July 1, 2025 date. All rate adjustments and increases already implemented will remain in the budget and efforts to implement the Regional Center Provider Rate Reform will continue, though with the original July 1, 2025 implementation date. 
  • Preschool Inclusion Grants- A delay of $10 million General Fund annually from the Preschool Inclusion Grant program until 2026-27.

View the complete 2024/2025 Proposed Budget

Eastern Los Angeles Regional Center will be hosting a series of Legislative Workshops that are open to the community. These workshops are designed to equip the community with information and tools on how to get involved and make a difference in the legislative or budget process, view the flyer for more information.

Visit https://ebudget.ca.gov/ for the most up to date information regarding the CA Budget. 

The Learning Marketplace Presents: Legislative Training

Do you want to know more about the legislative or budget process? How a bill actually becomes a law? Do you want to learn how to better engage and get involved with your elected officials? If so, contact Roxy Ortiz for more information regarding upcoming sessions at rortiz@elarc.org 

Bill Update:

These are several bills that will impact the regional center system (this is a limited list, for a more comprehensive list (please visit ARCA’s website).

You can also search for other bills by visiting the California Legislative Information bill search. 

ARCA Reports

October 2018: The Association of Regional Center Agencies (ARCA) has released  its newest report: Building A System for Tomorrow: Supporting People with Developmental Disabilities to Lead Inclusive Lives.  This paper focuses on the essential resources the developmental services system needs to build a system for the future - to support individuals with developmental disabilities to lead inclusive lives they choose for themselves in their own communities. 

Additionally, reports authored by ARCA  in earlier years explain how funding limitations have negatively impacted regional centers’ ability to provide quality services to individuals with developmental disabilities and their families.  By posting these reports, ELARC hopes that they will increase your understanding of the challenges the developmental services system faces in supporting each Californian with a developmental disability as envisioned by the Lanterman Act.

Previous ARCA Reports

On the Brink of Collapse
Funding the Work of California’s Regional Centers
Inadequate Rates for Service Provision in California

PLEASE NOTE:

Please note: The Budget Page is updated when actions taken on the California state budget from the State Legislature and/or Governor's office and/or Department of Developmental Services have or may have significant impact for individuals with developmental disabilities.