Newsom seals $351.7B California budget, bets on reserves to weather volatility
TL;DR
Governor Newsom and lawmakers reached a $351.7 billion budget deal that uses a windfall from stock gains and new taxes to avoid deep cuts, while boosting funding for schools, healthcare, childcare and housing, and proposing a larger rainy-day reserve via a constitutional amendment. The plan aims to weather revenue swings, but economists warn the fix may be temporary and the state remains structurally reliant on reserves amid a long-term deficit.
- Newsom, California Legislature reach $351.7-billion budget deal Los Angeles Times
- Gov. Gavin Newsom, California Democrats announce budget deal. Vote expected Monday Sacramento Bee
- Governor Newsom, Legislative leaders announce 2026-27 balanced budget agreement that ensures $0 deficit, while funding healthcare and key services California State Portal | CA.gov
- California Leaders Agree to $351 Billion Budget, Software Tax Bloomberg.com
- State budget negotiations enter final days, what's in and out Spectrum News
Want the full story? Read the original reporting
Read on Los Angeles Times