By Ricardo Roura
Governor Gavin Newsom announced this Thursday California’s revised budget for fiscal year 2026-2027which completely eliminates the state’s projected deficit through July 2028.
Newsom’s revised budget proposal amounts to $349.4 billion dollarswhich would represent the largest state spending draw in California history.
California’s fiscal future is on a stronger footing for the years yet to come encourage.
$0 deficit THIS funds year.
$0 deficit NEXT funds year.
$0 structural deficit through July 2028.
Long-term deficit: Gash by extra than half of. pic.twitter.com/Ssq8jDGbGB— Governor Gavin Newsom (@CAgovernor) Would possibly perchance 14, 2026
The governor’s proposal considers solid reserves and protection for fundamental services in the state amid economic uncertainty and the Trump administration’s attacks on health care and working families.
Keep reading: California’s budget in the red: $18 billion deficit
According to the budget proposal presented by Newsom, entails a reduction of $1.8 billion in Usual Fund expenseswithout a dollar of deficit in the current and in the following two fiscal years.
The proposal cut California’s long-term operating imbalance by more than half for the 2028-2029 budget, which represents a multi-year fiscal stabilization effort.
Newsom’s proposed budget benefits California with transformative investments in child care, schools, higher education, public safetyhealthcare, housing, clean energy, startups, and protecting natural resources.
Keep reading: $12 billion shortfall in California budget: Newsom
“California is proof that Fiscal discipline and progressive values go hand in hand“Governor Gavin Newsom declared in a statement.
“We are balancing the budget, eliminating the deficit, cutting spending and building reservesall while protecting health care, education and essential services for Californians,” added the state president.
In his proposal, Newsom balances both the 2026-2027 and 2027-2028 fiscal yearsmaking substantial progress in reducing long-term operating deficits in the coming years.
Keep reading: California approves budget with a $46.8 billion deficit
The proposal does not consider significant new commitments of recurring expenses charged to the Usual Fund. However, the project prioritizes fiscal containment, long-term sustainability and protection of the State against future economic volatility.
The budget considers $9.7 billion for state Surplus Reserve Account with the purpose of strengthening California’s position over the long term, supporting future fiscal years and avoiding overcommitting revenue during uncertain economic conditions.
Also maintains close to $30,000 million dollars in continuous reserves —a figure that has grown 30% since the start of the Newsom administration— which includes an increase in the Days of Need Fund (known as the Moist Day Fund).
Keep reading: Governor Newsom: ‘The state of the state is strong and resilient’
For Governor Newsom’s budget summary for fiscal year 2026-2027, you can check this link.
Keep reading:
· The fight for a fair and effective budget for California intensifies
· The governor’s commitment to environmental protection falters
· California’s budget deficit increases by almost $32 billion, declares Governor Gavin Newsom
