SACRAMENTO, California — Governor Gavin Newsom, Senate President pro Tempore Monique Limón, and Assembly Speaker Robert Rivas announced a three-party agreement on California’s 2026-27 state budget on June 26, delivering a balanced spending plan with zero deficit that protects Californians while maintaining the state’s long-term fiscal stability.
Pleasanton, a city of roughly 80,000 in the Tri-Valley region of Alameda County about 40 miles east of San Francisco, serves as the corporate headquarters of Workday, Clorox, and Safeway.
The agreement builds on California’s strong fiscal foundation by preserving reserves, maintaining responsible budgeting practices, and continuing strategic investments that strengthen communities, grow the economy, and expand opportunity across the state. The plan sets aside more than six billion dollars in anticipated revenues in a holding account to ensure balance for the coming fiscal year and the year after.
“A balanced budget isn’t an end in itself—it’s how we deliver for Californians,” Governor Newsom said. “This budget demonstrates responsible choices that protect our fiscal strength while continuing to invest in what matters most.”
Among its key priorities, the budget funds small business tax cuts, maintains free school meals and universal pre-school, makes a historic investment in students with disabilities, and continues investments in healthcare affordability. It also includes new funding to safeguard and expedite elections by increasing staffing, voter outreach, and education efforts to combat mis- and disinformation.
