Newsom, California Legislature reach $351.7-billion budget deal
Key takeaways
- The deal provides nearly $2 billion in state revenue next year through tax hikes on corporations, new levies on software sales and a revamped tax on managed healthcare organizations.
- “We want to leave the next governor not only a balanced budget, but a budget that is substantially structurally sound, and we’re going to accomplish that,” Newsom said in an interview Friday.
- Early forecasts last June projected a $12.6-billion deficit in 2026-27, according to the California Department of Finance.
Gov. Gavin Newsom greets legislators as he arrives at the Capitol to give his State of the State address in January in Sacramento. (Hector Amezcua / Associated Press) By Taryn Luna Senior Sacramento Reporter Follow June 26, 2026 6:55 PM PT 3 6 min Click here to listen to this article Share via Close extra sharing options Email Facebook X Linked In Threads Reddit Whats App Copy Link URL Copied! Print 0:00 0:00 1x This is read by an automated voice. Please report any issues or inconsistencies here.
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SACRAMENTO — Gov. Gavin Newsom reached an agreement Friday with legislative leaders on a $351.7-billion state budget in his final year as governor, a spending plan that uses a tax windfall to avoid major cuts and lessen California’s chronic deficit in the years ahead.