State Controller Malia M. Cohen Responds to Governor’s May Budget Revision

SACRAMENTO - Today, Controller Malia M. Cohen issued the following statement on Governor Gavin Newsom's May Revision.

"When I released my April Cash Report on Friday, I cautioned that although current revenues are exceeding projections and the state has enough reserves to cover expenses this fiscal year, budget forecasts show significant deficits in the years ahead. Addressing these shortfalls will require the Governor and Legislature to establish clear spending priorities in this budget and upcoming budget cycles.

As the state's chief fiscal officer - with a clear view of what comes in and out of California's checking, savings, and credit accounts - I know, just like every Californian does, that we must be extremely cautious about new commitments. Proposals for long-term funding of new programs and services must be weighed carefully. The financial uncertainty ahead is too great to make promises we may not be able to keep.

Like all Californians who check their bank accounts to decide whether they can afford gas, groceries, or the commute to work, I see you - and I understand those daily decisions. That's why I urge all of us to be fiscally prudent. With growing uncertainty around federal funding and other state revenue sources, we must prepare for the possibility of tougher financial times ahead.

I look forward to working with the Governor and all members of the Legislature to ensure that we have the appropriate cash and reserves to get us through this financially turbulent time so that we can continue to move California forward so that families, individuals, vulnerable populations, and businesses can continue to thrive."

As the chief fiscal officer of California, Controller Cohen independently oversees and manages California's financial resources with integrity and transparency to build trust. The Controller is responsible for accountability and disbursement of the state's financial resources. The Controller has independent auditing authority over government agencies that spend state funds. She is a member of numerous financing authorities, and fiscal and financial oversight entities including the Franchise Tax Board. She also serves on the boards for the nation's two largest public pension funds. Follow the Controller on X at @CAController and on Facebook at California State Controller's Office.

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