SACRAMENTO – (INT) – Governor Newsom’s revised proposed budget for 2026-27 is balanced, with increased revenues, he reported Thursday (May 14th).

OVERALL BUDGET
The May Revise anticipates expected revenue of $233.6 billion, which is $1.3 billion more than was expected in January.

Spending is expected to be $246.6 billion, which is $1.8 billion less than the estimate in January.

The proposed budget is balanced and includes money the state must set aside for surprise costs.

• There is $216.7 billion allocated to Medi-Cal for 2026-2027, serving 13.9 million people, more than one-third of Californians.

• An increase of $112 million to pay for cost-of-living adjustments to childcare programs run by the CA Dept. of Social Services (CDSS).

• Continue the plan to reorganize housing efforts under the California Housing and Homeless Agency (CHHA) and the Housing Development and Finance Committee (HDFC).

• Shift $560 million to HDFC to administer affordable housing programs.

Senate budget leader Roger Niello, R-Fair Oaks, declared after the presentation that Newsom’s legacy “certainly won’t be as good as Governor Brown’s.” “When the governor leaves office, he will be leaving the next governor ongoing structural deficits from 2028 on— the next governor and the rest of we Californians. I don’t think that’s a very good legacy,” he said.

The Sacramento Bee reported that, others, too, have expressed concern that the May Revision leaves them in the lurch — especially counties and immigrant rights advocates, who say Newsom’s balanced budget kicks additional costs to local government and adds more cost pressures for certain immigrants.

Story Date: May 15, 2026