Governor Gavin Newsom today signed California's 2026-2027 state budget, enacting a balanced spending plan that protects residents and strengthens the state's long-term financial stability without a projected deficit.
The Governor also released a video message, emphasizing his administration's seven-year vision of responsible financial management. He rejected the notion that governments must choose between a balanced budget and transformative public investments. "During decades we were told that governments had to choose between maintaining a balanced budget or investing in people. California has shown that that is a false choice," Governor Gavin Newsom said.
The budget maintains nearly $30 billion in reserves, or over $35 billion including other reserve accounts, preparing California for future economic uncertainties. It also includes the "Save for California's Future Act," a constitutional amendment to strengthen the state's Rainy Day Fund. California's GDP has grown from $3 trillion to $4.25 trillion under Newsom's leadership, attracting significant venture capital.
Key provisions of the budget include funding tax relief for small businesses, universal school meals, transitional kindergarten, and expanded childcare. It also features the largest single-year investment in special education in California's history, protects healthcare access, and promotes housing reforms to accelerate construction. Further investments target disaster recovery, wildfire resilience, infrastructure, workforce development, and public safety, alongside efforts to strengthen election administration.
This budget aims to leave California stronger, with robust finances and a leading economy, prepared to face future challenges.