Governor Proposes Hefty Increase In DFPI Budget

Pursuant to Article IV, Section 12(a) of the California Constitution, today is the deadline for the Governor to submit a proposed balanced budget.  The next step is for the budget to be introduced into both houses of the legislature in identical budget bills.  Cal. Const. Art. IV, § 12(b)(2).  The legislature is required to enact a budget bill by midnight on June 15 (the state's fiscal year begins on July 1).  Cal. Const. Art. IV, § 12(b)(3).  During the period between the introduction of the budget bills and enactment, the budget committees in the Senate and the Assembly review the proposed budget.  The Legislative Analyst's Office will also perform a detailed analysis of the Governor's budget and release reports.  By May 14, the Governor will submit changes to the budget based on updated revenue data.  After differences between the Assembly and Senate versions of the budget are reconciled, both houses vote on a single version of the bill.  A budget bill becomes effective upon the Governor's signature (unless a different date is specified in the bill).  Cal. Const. Art. IV, § 12(e)(1).  If a budget bill is not passed by midnight on June 14, the Constitution prohibits any appropriation from the current budget or future budget to pay any salary or reimbursement for travel or living expenses for Members of the Legislature during any regular or special session for the period from midnight on June 15 until the day that the budget bill is presented to the Governor.

The Governor's proposed budget for the 2021-2022 fiscal year includes a nearly 24% increase in the budget of the Department of Financial Protection and Innovation.  This includes nearly $11 million and 44 new positions to license, regulate, and examine debt collectors in compliance with Chapter 163, Statutes of 2020 (SB 908).  Overall, the Governor is proposing a 12.5% increase in the number of authorized positions for the DFPI.