SACRAMENTO, California — Governor Gavin Newsom and California legislative leaders are locked in a budget standoff with just days remaining before the July 1 start of the 2026-27 fiscal year, as the Legislature pushes to restore more than $6 billion in spending that Newsom proposed cutting. The governor’s $349.4 billion spending plan aims to close years of multibillion-dollar deficits by holding down expenditures on education, health, and social welfare programs.
The Legislature met the June 15 constitutional deadline by passing its own budget version, which rejects or delays many of Newsom’s proposed reductions to safety net programs. The legislative plan spends more than $6 billion above the governor’s proposal, increasing the projected deficit unless revenues rise as lawmakers expect.
The Legislature looks to stop drastic cuts to safety net programs that millions of Californians rely on to make ends meet.
Senate President Pro Tem Monique Limón, a Democrat from Santa Barbara, framed the Legislature’s position as a defense of residents who depend on state services. Advocates for programs like Medi-Cal have bombarded legislators with complaints since Newsom released his May budget revision, pressing them to resist the cuts.
The two sides now have roughly two weeks to reconcile their differences before the new fiscal year begins. Newsom’s leverage is diminishing as he approaches lame-duck status, and his presidential aspirations may matter less to legislators focused on maintaining constituent services. The outcome of the negotiations will shape the fiscal landscape for Newsom’s successor, who will inherit whatever budget deal emerges.
Pleasanton, located in the Tri-Valley area about 40 miles east of San Francisco in Alameda County, has a population of approximately 80,000. The city is home to corporate headquarters for Workday, Clorox, and Safeway, and state spending on infrastructure and social programs has a direct bearing on the regional economy and public services.
