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California’s budget outlook is grim. Here’s what you need to know
state budget Newsom
Gov. Gavin Newsom releases his revised 2025-26 budget proposal in Sacramento on May 14, 2025 (FRED GREAVES/CalMatters).
Gov. Gavin Newsom opened this year with a rosy forecast: Buoyed by $17 billion more in revenue than previously planned, the state would have a modest surplus of $363 million for fiscal year 2025-26, he told reporters in January.