Newsom Unveils Revised Budget Erasing California's Deficit, With Nearly $30 Billion in Reserves
On May 14, 2026, in Sacramento, Sacramento County, California, Governor Gavin Newsom unveiled his revised budget proposal for 2026-27. The Governor's Office said the revision delivers a zero deficit in both this budget year and the next, eliminates the structural deficit through July 2028, and protects core services including health care and education.
The revision cuts General Fund spending by $1.8 billion and deposits $9.7 billion into the state's Surplus Holding Account to support future years, while maintaining nearly $30 billion in combined reserves. The Governor's Office said the plan cuts the long-term operating imbalance for 2028-29 by more than half and proposes no significant new ongoing General Fund commitments, as a guard against economic uncertainty.
Spending items include $300 million to protect health care affordability, a record $5 billion education block grant for priorities such as teacher training, a $2.4 billion ongoing increase for special education described as the largest in state history, $500 million for literacy and math support in high-need schools, a new $100 million disaster rebuilding fund for wildfire survivors, and a 50 percent cut in LLC fees for hundreds of thousands of new small businesses. The revised budget still requires approval by the state Legislature.
Source: Office of the Governor of California
Published by GSM · USA (original Chinese edition)
Photo: 图：位于萨克拉门托的加州议会大厦穹顶与旗帜（资料照片）。Alex Wild 摄，CC0，经 Wikimedia Commons。 / Photo: The dome and flags of the California State Capitol in Sacramento (file photo). Photo by Alex Wild, CC0, via Wikimedia Commons.
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