Newsom signs final $351.7B California budget funded by stock-market windfall

California Gov. Gavin Newsom signed his final state budget at $351.7 billion, largely funded by stock-market gains of the wealthy, and expanding programs like free school meals, universal transitional kindergarten, childcare slots and Medi-Cal. The plan raises concerns from analysts about a potentially temporary revenue bump and growing ongoing costs, with the LAO cautioning that the state has dipped into reserves to balance funds in recent years. Education and Medi-Cal remain the largest expenditures, while adjustments to asset limits and care delivery aim to control costs; the budget takes effect July 1.