Understanding the Governor’s 2025-26 State Budget Proposal
California Budget & Policy Center
First published January 2025
Governor Gavin Newsom released his proposed 2025-26 California state budget on January 10, projecting a small positive balance of $363 million after two years of state budget deficits. The governor’s proposal projects $16.5 billion in additional revenue compared to estimates from last June and would draw down $7.1 billion in reserves. The $229 billion General Fund spending plan would protect investments made in prior years, but does not propose any significant new investments to address affordability challenges confronting millions of Californians or major tax policy changes to increase state revenues.
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