California Budget Center: Newsom's Budget Balances on the Backs of Low-Income Residents

The California Budget & Policy Center released a statement on Governor Newsom's 2026-27 revised budget, highlighting both positive revenue solutions and harmful cuts to low-income Californians. - The governor's plan includes a digital software tax and a cap on business credits, addressing long-term revenue imbalance.

- However, it reinstates Medi-Cal asset limits, expands work requirements, and increases premiums for certain immigrants, risking health coverage for up to 2 million people. - The budget also cuts child care spaces, ignores affordable housing needs, and fails to boost county budgets amid federal cuts from H.R.

1. - The center argues the structural deficit is a revenue problem, not a spending problem, and calls for closing the Water's Edge loophole to raise $3 billion annually.

The statement emphasizes that upcoming decisions will test California's commitment to a 'California for All.'