The California 2026-27 Budget Fact Sheet outlines key financial decisions made by Governor Newsom, focusing on fiscal responsibility and support for families. It highlights a balanced budget with no deficits projected for the upcoming years. Key investments include healthcare affordability, small business tax cuts, and significant funding for education and housing. This document serves as a resource for policymakers, educators, and residents interested in California’s financial planning and priorities.

Key Points

  • California’s 2026-27 budget emphasizes fiscal discipline and no projected deficits.
  • Investments in healthcare aim to lower costs for families across the state.
  • Small businesses benefit from a 50% tax cut on LLC taxes over three years.
  • Record funding is allocated for education, supporting students and teachers.
Nathan Lubega
Author:Governor Gavin Newsom
2 pages
Language:English
Type:Report
Accounting
Nathan Lubega
Author:Governor Gavin Newsom
2 pages
Language:English
Type:Report
Accounting
66
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California 2026-27 Budget
Balanced Budget. Lower Costs. Stronger California.
NO deficit THIS YEAR OR NEXT YEAR.
$0
CALIFORNIA’S DEFICIT
TODAY - JULY 2028
Governor Newsom’s 2026-27 balanced budget protects families, lowers costs, and invests in
the future. This fiscally disciplined plan cuts the long-term deficit by more than half and
tightens Sacramento’s belt — while supporting our most vulnerable Californians amid the
President’s unrelenting attacks on our state. As Donald Trump continues to go after our
working families, California is protecting essential services while advancing fiscal responsibility
and affordability.
Key Announcements
Building a stronger California
● Balances the budget while protecting education, health care, housing, and public safety.
● Reduces long-term spending commitments and keeps California on stable fiscal footing.
● Continues responsible budgeting that protects families today while preparing for tomorrow.
Keeping healthcare more affordable
● $300 million to lower health care costs for California families.
● Keeps $0 monthly health plans available for many lower-income Californians.
● Helps offset higher premiums caused by the expiration of enhanced federal ACA subsidies.
Helping small businesses grow
● 50% tax cut on LLC taxes for hundreds of thousands of new small businesses over the next three
years.
● Continues making California the nation's leader in new business creation.
California 2026-27 Budget 1
Limiting corporate tax breaks
● Prevents the largest corporations from using unlimited tax credits.
● Protects tax incentives while ensuring profitable companies contribute to schools, public
safety, and health care.
Supporting students and teachers
● Record investment in California schools.
● $5 billion to support students,strengthen the educator workforce and fund local priorities.
● Creates up to 14 weeks of paid pregnancy leave for TK-12 school and community college
employees.
● $400 million to expand literacy coaches and math support in high-need schools.
● Improves school support and accountability by moving management of the Department of
Education into the Executive Branch and strengthens the State Superintendent’s role to foster
alignment of education policies across public education from TK through college.
Historic investment in students with disabilities
● Largest special education investment in California history.
● $2.4 billion in ongoing funding—a 43% increase.
● Helps schools provide better services for students with disabilities as federal support stalls.
Making housing more affordable
● Cuts unnecessary local fees that increase the cost of affordable housing.
● Modernizes the state housing finance system to streamline funding and accelerate affordable
housing production.
● Expected to save tens of thousands of dollars per affordable home and free up hundreds of
millions of dollars to build more affordable housing with existing resources.
● Invests $500M for Low Income Housing Tax Credits and $200M for the Multi-Family Housing
Program.
Helping families rebuild after disasters
● $100 million Disaster Rebuilding Fund.
● Helps homeowners rebuild after disasters when insurance isn't enough.
● Expands access to affordable construction financing and lowers rebuilding costs.
Safeguarding and speeding up elections
● $29 million for increased staffing, technology and equipment upgrades and purchases for
counties to speed up counting.
● $5 million for voter outreach and education at the county level.
● $5 million for voter outreach and education at the statewide level via Secretary of State
● $750,000 to support statewide efforts to combat mis- and disinformation.
California 2026-27 Budget 2
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End of Document
66

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Balanced Budget. Lower Costs. Stronger California.

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FAQs

what is the California 2026-27 budget about

The California 2026-27 Budget focuses on a balanced budget that aims to protect families, lower costs, and invest in the future.

  • It eliminates any deficit for this year and the next.
  • Key investments include education, healthcare, housing, and public safety.
  • The budget also reduces long-term spending commitments to ensure fiscal stability.

how does the California 2026-27 budget help small businesses

The California 2026-27 Budget includes significant support for small businesses through tax cuts.

  • A 50% tax cut on LLC taxes is planned for hundreds of thousands of new small businesses over the next three years.
  • This initiative is aimed at making California a leader in new business creation.
  • Additional resources are allocated to help small businesses grow and thrive in the state.

what are the key features of the California 2026-27 budget

The California 2026-27 Budget is characterized by several key features aimed at fiscal responsibility and support for vulnerable populations.

  • It balances the budget while investing in essential services.
  • Healthcare affordability is addressed with $300 million allocated to lower costs.
  • There is a historic investment in education, particularly for students with disabilities, totaling $2.4 billion.
  • Housing affordability is improved by cutting unnecessary local fees and modernizing the housing finance system.

how does the California 2026-27 budget impact education

The California 2026-27 Budget makes record investments in education, focusing on support for students and teachers.

  • It allocates $5 billion to strengthen the educator workforce and fund local priorities.
  • Additionally, it creates up to 14 weeks of paid pregnancy leave for TK-12 school and community college employees.
  • There is also a $400 million investment to expand literacy coaches and math support in high-need schools.

what is included in the California 2026-27 budget for healthcare

The California 2026-27 Budget includes substantial provisions to make healthcare more affordable for families.

  • A total of $300 million is designated to lower healthcare costs.
  • It maintains $0 monthly health plans for many lower-income Californians.
  • This budget also aims to offset higher premiums resulting from the expiration of enhanced federal ACA subsidies.

how does the California 2026-27 budget address housing

The California 2026-27 Budget takes significant steps to make housing more affordable.

  • It cuts unnecessary local fees that contribute to the high costs of affordable housing.
  • The budget modernizes the state housing finance system to streamline funding.
  • Investments include $500 million for Low Income Housing Tax Credits and $200 million for the Multi-Family Housing Program.

what are the disaster recovery plans in the California 2026-27 budget

The California 2026-27 Budget allocates funding to assist families in rebuilding after disasters.

  • A $100 million Disaster Rebuilding Fund is established to help homeowners when insurance isn't sufficient.
  • This includes expanding access to affordable construction financing.
  • Lower rebuilding costs are also a priority within this budget.

how does the California 2026-27 budget support students with disabilities

The California 2026-27 Budget makes a historic investment in special education, focusing on students with disabilities.

  • It includes $2.4 billion in ongoing funding, representing a 43% increase.
  • This funding is aimed at improving services for students with disabilities as federal support declines.
  • Schools will receive better resources to meet the needs of these students.

what measures are in the California 2026-27 budget for elections

The California 2026-27 Budget includes measures to safeguard and expedite elections.

  • It allocates $29 million for increased staffing and technology upgrades.
  • Additionally, $5 million is set aside for voter outreach and education at both county and statewide levels.
  • Efforts to combat misinformation are supported with a $750,000 allocation.