
"The proposal reflects stronger-than-expected revenues, in large part because it assumes the AI Boom will continue, resulting in a $348.9 billion budget and a smaller-than-expected $2.9 billion deficit."
"The headlines over the weekend mostly focused on the big-budget picture, increases in education funding, cuts to health care (especially for immigrant communities) and refilling the "rainy day fund," building total reserves to $23 billion."
"Climate and transportation advocates warn that Gov. Gavin Newsom's budget falls short on building a climate-friendly, car-independent California, even as the governor included some welcome initiatives. ClimatePlan - whose vision is to create a healthier, more sustainable California - argues the proposal would make it "more difficult and expensive for Californians to live and get where they need to go.""
Governor Gavin Newsom unveiled a $348.9 billion proposed 2026-27 budget that assumes the AI Boom will continue, leaving a $2.9 billion deficit and building $23 billion in total reserves. The proposal increases education funding while reducing certain health-care services, with notable impacts on immigrant communities. The budget commits funding for High-Speed Rail, temporary Bay Area transit operations ahead of a fall ballot measure, and allocates $500 million to the Homeless Housing, Assistance and Prevention (HHAP) Grant program. Climate and livability advocates criticized insufficient transit operations funding, a stagnant Active Transportation Program, and the absence of restored e-bike incentives, warning these gaps will hinder a climate-friendly, car-independent California and make daily travel more difficult and expensive for residents.
#california-budget #education-funding #transit--active-transportation #homelessness--housing #immigrant-health-care
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