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<\/p>\nRejecting the false choice<\/p>\n
The 2026-27 budget reflects a governing philosophy that has defined the Newsom administration: responsible budgeting is not about cutting ambitious goals or vital programs \u2014 it\u2019s about building the fiscal strength to invest in what matters.<\/p>\n
Through Governor Newsom\u2019s policies, California has grown into a world-leading economy, expanding from $3 trillion to a $4.25 trillion GDP, attracting nearly two-thirds of all U.S. venture capital investment, building historic budget reserves, and contributed approximately $15 billion toward paying long-term pension liabilities \u2014 all while making record investments in Californians.<\/p>\n
The budget preserves nearly $30 billion in reserves \u2014 and just over $35 billion when additional holding accounts are included \u2014 ensuring California remains prepared for future economic uncertainty.<\/p>\n
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Working alongside the Legislature, the Governor signed the Save for California\u2019s Future Act<\/a>, advancing a constitutional amendment that will strengthen and modernize California\u2019s Rainy Day Fund for future generations.<\/p>\n A budget that invests in Californians<\/p>\n The budget signed today continues California\u2019s commitment to investing in opportunity while maintaining long-term fiscal discipline.<\/p>\n Among its key provisions, the budget:<\/p>\n Maintains a balanced budget with no projected deficit this year or next. A legacy built for the long term<\/p>\n Today\u2019s budget marks the culmination of years of disciplined fiscal management that positioned California to weather economic uncertainty without abandoning the investments that improve people\u2019s lives.<\/p>\n During Governor Newsom\u2019s administration, California became the first state to provide universal free school meals<\/a>, expanded universal transitional kindergarten<\/a>, dramatically increased childcare access<\/a>, delivered record funding for public schools<\/a>, expanded healthcare coverage to historic levels<\/a>, launched the nation\u2019s largest behavioral health transformation<\/a>, made the largest infrastructure investment in modern state history<\/a>, accelerated clean energy deployment<\/a>, strengthened renter protections<\/a>, expanded paid family leave and paid sick leave<\/a>, increased wages for millions of workers<\/a>, invested billions in affordable housing and homelessness response<\/a>, and helped more students graduate college debt-free<\/a>.<\/p>\n Those achievements were paired with responsible budgeting that built historic reserves, reduced debt, protected California\u2019s credit, and left the state\u2019s finances stronger than when the administration began.<\/p>\n As Governor Newsom said in today\u2019s video<\/a>, California\u2019s experience demonstrates that \u201cbalancing the budget and doing big things take the exact same skill.\u201d<\/p>\n This budget reflects that belief \u2014 protecting California\u2019s fiscal future while continuing to invest in the people, communities, and economy that make the Golden State a global leader. A fact sheet on the budget is available here<\/a>.\u00a0<\/p>\n The Governor today announced signing the following bills:<\/p>\n AB 109 by Assemblymember Jesse Gabriel (D-Encino) \u2014 Budget Act of 2026.
\nFunds tax relief for California small businesses.
\nContinues universal school meals, universal transitional kindergarten, expanded childcare, and free summer school.
\nDelivers the largest single-year investment in special education in California history.
\nProtects healthcare affordability and access.
\nAdvances housing reforms that reduce red tape and accelerate homebuilding.
\nContinues historic investments in behavioral healthcare and Proposition 1 implementation.
\nInvests in disaster recovery, wildfire resilience, infrastructure, workforce development, and public safety.
\nStrengthens election administration while protecting against mis- and disinformation.<\/p>\n
\nSB 110 by Senator John Laird (D \u2013 Santa Cruz) \u2014 Budget Act of 2026
\nSB 111 by Senator John Laird (D-Santa Cruz) \u2014 Budget Act of 2026.\u00a0
\nAB 112 by Assemblymember Jesse Gabriel (D-Encino) \u2014 Budget Acts of 2022, 2023, 2024, and 2025.\u00a0
\nSB 122 by the Committee on Budget and Fiscal Review \u2014 Taxation.
\nSB 125 by the Committee on Budget and Fiscal Review \u2014 Medi-Cal: managed care organization provider tax.
\nAB 150 by the Committee on Budget \u2014 Early care and education.
\nAB 152 by the Committee on Budget \u2014 Human services.
\nSB 164 by the Committee on Budget and Fiscal Review \u2014 Health.\u00a0
\nSB 170 by the Committee on Budget and Fiscal Review \u2014 Governor\u2019s Reorganization Plan No. 1 of 2025: codification.\u00a0
\nSB 174 by the Committee on Budget and Fiscal Review \u2014 Courts.\u00a0<\/p>\n