What to know about Gov. Gavin Newsom’s last state budget
CalMatters••nation
Key Points:
- Governor Gavin Newsom’s 2026-27 budget proposal forecasts a $2.9 billion shortfall, significantly better than the $18 billion deficit projected by the Legislative Analyst’s Office, relying heavily on continued revenue from tech and AI sectors.
- The budget increases spending by nearly $30 billion to $349 billion, with substantial boosts to education funding, including $350 million more for the University of California and $365 million for California State University, while preserving K-12 funding and increasing special education support.
- Newsom’s plan cuts housing and homelessness funding by over 56%, reducing the budget for these areas by more than half amid expiring one-time federal dollars, drawing criticism from county officials and housing advocates concerned about ongoing homelessness efforts.
