California Budget

Gov. Gavin Newsom speaks about his state budget proposal Thursday, May 14, 2026, in Sacramento, Calif.

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Newsom outlines his final budget proposal with no deficit, new major spending

Newsom outlines his final budget proposal with no deficit, new major spending

California Gov. Gavin Newsom has unveiled his final budget proposal. The plan presented Thursday includes no deficit for his last year of office and the next. It is a $350 billion spending plan that includes little new spending but also avoids major cuts. Newsom is eager to safeguard programs that have defined his tenure as the leader of the nation’s most populous state and one of the world’s largest economies. Revenues are $16.5 billion higher than projected, thanks to the booming stock market and artificial intelligence industry.