On May 10, 2024, Governor Gavin Newsom held a press conference to announce the major elements of the May Revision of the 2024-25 Budget. The May Revision reflects a higher-than-expected deficit. In January, the Administration projected a $38 billion deficit for 2024-25, which was smaller than what was estimated by the Legislative Analyst’s Office (LAO). The May Revision shows lower-than-projected state revenues and projects a total budget deficit of $44.9 billion, an increase of $7 billion from the January Budget. The Administration and Legislative Analyst’s Office indicate the budget might not improve much over the next several years and additional budget cuts may happen.