Article 14, Section 12 of the California Constitution requires the Governor to submit a budget to the Legislature by January 10 of each year.  The Constitution further required that the budget be accompanied by a budget bill, which the chairperson of the budget committees of each house of the legislature must introduce "immediately".  The legislature must pass the budget by June 15.   

In the interval between the introduction and passing of the budget, various adjustments to revenues and expenditures are made.  The administration communicates these proposed changes by sending what is known as a "finance letter" to the chairpersons of the budget committees.  Adjustments to the Governor's budget are reflected in what is known as the "May Revise".  On May 10, Governor Newsom release the May Revise of  his 2024-2025 budget (California's fiscal year begins on July 1).   

With respect to the Department of Financial Protection & Innovation, the May Revise proposes a 6.33% increase in expenditures, or $10.61 million, and a 3.42% increase in authorized positions, or 29 positions.  If the legislature agrees, then the DFPI's authorized expenditures for the next fiscal year would be $178.1 million and it would have a total of 876 authorized positions.  According to the finance letter,  the increases are related to rent increases, the development of an online search portal as required by SB 54, and implementation of the Digital Financial Assets Law Program as required by AB 39.  

For those who may not recall SB 54 requires a venture capital company, as defined to report to the DFPI specified information about their funding determinations, including, at an aggregate level, specified demographic information for the founding teams of all of the businesses in which they made a venture capital investment in the prior calendar year.  See Despite Admittedly "Problematic Provisions" Governor Newsom Signs Venture Capital Disclosure Bill.  In the finance letter, the administration is asking for $7.9 million in 2024-2025 and $11.6 the following year to implement this law.  

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