SACRAMENTO, California — Governor Gavin Newsom, Senate President pro Tempore Monique Limón, and Assembly Speaker Robert Rivas announced a balanced 2026-27 state budget agreement on June 26 that eliminates the projected deficit while protecting healthcare, education, and housing programs from federal funding cuts.
Pleasanton, in the Tri-Valley region of Alameda County about 40 miles east of San Francisco, has approximately 80,000 residents and is home to Workday and Clorox corporate headquarters.
The agreement delivers a spending plan with zero deficit in both the current and upcoming fiscal years, setting aside more than $6 billion in anticipated revenues in a holding account as a buffer against economic uncertainty. The deal was reached after months of negotiations between the governor’s office and Democratic legislative leaders, who hold a supermajority in both chambers.
“A balanced budget isn’t an end in itself—it’s how we deliver for Californians,” Newsom said in a statement. “This budget demonstrates responsible choices that protect our fiscal strength while continuing to invest in what matters most. In California, we support working families, create more opportunity, and build safer, healthier communities.”
Key provisions funded in the budget include universal pre-school and childcare slots, free school meals, historic investments in students with disabilities, and healthcare affordability programs. The agreement also limits large corporate tax breaks to preserve funding for critical services, including healthcare access for all Californians.
