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NewsNBC Bay Area — Local NewsJune 30, 2026United States

California's $352 Billion State Budget Plan

Governor Gavin Newsom has signed a $352 billion state budget that avoids major spending cuts by utilizing higher-than-expected tax revenues from the AI-driven stock market boom. The plan includes targeted tax increases, funding for childcare expansion, and resources to accelerate the state's vote-counting process ahead of the November election.

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Why It Matters

This budget dictates state service levels, tax obligations, and election administration for California residents for the upcoming fiscal year while deferring several major financial decisions to the next governor.

Key Facts

  • The total state spending plan is approximately $352 billion.
  • The budget includes $29 million for the Secretary of State to speed up vote counting through staffing and technology upgrades.
  • An additional $10 million is allocated for voter education, split between the state and counties.
  • Nearly $1 million is allocated to combat election misinformation.
  • The budget funds 23,000 new childcare spaces.
  • Revenue is increased through a reformed healthcare provider tax, a new sales tax on certain software, and limited corporate tax breaks.
  • The budget delays a decision on increasing Medi-Cal premiums for adults ages 19 to 59 from $30 to $50 per month.
  • Management of the Department of Education is shifted to the governor's office.
  • The budget defers decisions on cap-and-trade program revenue spending to the next governor.
  • The Department of Finance is directed to explore potential penalties for large companies whose employees are enrolled in Medi-Cal.

Who's Mentioned

personDonald Trump“President of the United States referenced regarding federal healthcare cuts and ”personXavier Becerra“Candidate to replace Newsom.”personRoger Niello“Republican State Senator critical of the budget.”organizationSecretary of State“Recipient of $29 million for election technology and staffing.”personMaría Elena Durazo“Democratic State Senator concerned about delayed healthcare resolutions.”personJesse Gabriel“Assembly Budget Committee Chair.”personSteve Hilton“Candidate to replace Newsom.”personGavin Newsom“Governor of California who signed the budget.”organizationDepartment of Education“Management shifted to the governor's office.”organizationLegislative Analyst’s Office“Provided revenue projections.”