Governor Gavin Newsom's final budget for 2026-27 takes a cautious approach to address California's fiscal volatility, but it relies on federal healthcare cuts and minor tax increases, drawing criticism from advocates and county officials. - The budget aims to erase a $125 billion structural deficit over four years.
- It includes $3.6 billion in new revenues from minor tax increases. - Federal healthcare cuts reduce state spending but affect low-income residents.
- Newsom avoids major tax hikes as a likely 2028 presidential candidate. The Legislature may push for restoring safety net programs and raising taxes, challenging Newsom's waning influence.