2024 State Budget Signed, Over $130 Million for Mandates

On Wednesday, June 26, Governor Gavin Newsom signed the 2024 California State Budget Act (Assembly Bill 107 – Gabriel (AD 46)).  As far as SB 90/State-Mandated Cost is concerned, the State Legislature and the Governor appropriated more than $130 million to pay the Fiscal Year 2022-23 Annual Claims.  This total of $130.3 million is $32 million more than is needed to satisfy payment for all timely claims submitted for the FY 2022-23 Annual Deadline back in February 2024.

In order for the State of California to avoid accrued interest on the FY 2022-23 Annual Claims, the State Controller’s Office must issue full-payment for all of these claims by August 15, 2024, (as required by Government Code section 17561.5).  Checks are typically received within one week of that date.

Separately, when the State of California has excess funding after payment of all programs, historically, the State Legislature will reappropriate those funds to make payment on unpaid “Late” claims.  Additionally, the State has another $29.9 million excess funding from the Budget Acts of 2021 through 2023.  Combining the $32 million overfunding for FY 2022-23 with the $29.9 million from prior years, the total of the excessive funding for local agencies would exceed $60 million.