On Friday, Governor Newsom released a $348.9 billion budget proposal to maintain funding for key services nearly 40 million Californians depend on — especially in areas where the federal government has pulled back. The release of the Governor's proposal begins an intensive process between the Administration and the Legislature to develop the 2026–27 State Budget.
"As we craft our State Budget — the guiding policy framework for the world's fourth-largest economy — we have the opportunity to confront our state's greatest challenges and put our values into action," said Assemblymember Hart. "We also have the responsibility of protecting the hard-earned dollars of taxpayers and planning ahead for economic downturns. More than anything, I am committed to doing my part to ensure this budget helps the millions of Californians who are struggling to afford housing, pay their bills, and save for the future."
The Governor's proposal is based on an assumption that state revenues over the next three years will be $42 billion higher than previously estimated — an indication of the continued strength of California's economy. If this projection holds, the state's budget gap will be significantly smaller than in recent years.
The proposal champions California's public education system by featuring the highest per-pupil spending in state history, ongoing investment in universal transitional kindergarten, and expanded support for middle-class students pursuing higher education.
In addition, the proposed budget puts voter-approved climate funds to work by investing in resilience projects that strengthen public safety during natural disasters, protect our natural resources, and help Californians afford cleaner, more sustainable energy choices.
Importantly, these investments are proposed without raising taxes on workers or small businesses.
"I am cautiously optimistic about the Governor's higher revenue projections, while also being cognizant of the need to prepare for fiscal challenges on the horizon," Assemblymember Hart said. "I will work with Assembly Speaker Robert Rivas, Budget Chair Jesse Gabriel, and my colleagues to advance prudent investments in reserves and closely monitor risks to the financial forecast — including potential impacts from tariffs and disruptive federal immigration policies."
Gregg Hart represents the California Assembly's 37th Assembly District, which includes Santa Barbara, Goleta, Carpinteria, Montecito, Summerland, Buellton, Solvang, Lompoc, Guadalupe, Santa Maria, Orcutt, and Nipomo. He currently serves as the Chair of the Assembly Budget Subcommittee on Oversight & Accountability and the Assembly Select Committee on the Nonprofit Sector.
CONTACT: Lenh Voong, Capitol Director, lenh.voong@asm.ca.gov
Ethan Bertrand, District Director, ethan.bertrand@asm.ca.gov