The governor’s 2026-27 budget proposal projects $9 billion more in revenue than anticipated, banking on the AI-driven economy to last.

If Gov. Gavin Newsom's projected $42.3 billion revenue increase is real, he can conclude his governorship with the state’s finances no longer plagued by deficits.

The governor expects a small California budget surplus after facing a deficit one year ago.

The California state budget has been a rollercoaster over the past few years. Big deficits generally mean cutting plans and programs.

Gov. Newsom and legislative leaders announce an agreement to bridge the state budget deficit by dipping into reserves and reducing some spending. The deal also calls for a bill in August to set aside more money and a 2026 constitutional amendment to grow the state’s rainy day fund.

In his recent debate with Florida Gov. Ron DeSantis, Gov. Gavin Newsom declared that the state’s economy is “booming,” but a new report shows that it is actually slowing down.

After years of record California budget surpluses, Gov. Newsom outlined a plan to deal with a deficit he projects at $22.5 billion and said he can keep his big promises despite the shortfalls.

Mayor Sam Liccardo warned that city leaders should tighten their belts and boost city budget reserves to weather the economic storms ahead.

After weeks of talks, Gov. Gavin Newsom and legislative leaders announce a tax relief plan that includes refunds of as much as $1,050, part of a $300 billion budget deal announced Sunday night.

Gov. Gavin Newsom reveals his revised May budget, including his inflation relief plan and spending priorities on education, the environment.

Anti-poverty organizations are calling for the state to target some of its projected surplus to families making up to $30,000 a year. 

The governor’s California Blueprint bolsters the state’s ongoing work to address COVID-19, climate change, homelessness, inequality and fighting crime.

Assembly Democrats want to use $10 billion out of a projected $30 billion surplus to repair and expand K-12 school facilities to accommodate new transitional kindergarten and community schools approved in 2021.