The Implications of Federal Budget & Tax Proposals for California

Watch to learn more Ever wondered where California gets the money to fund schools, healthcare, and public services? This quick explainer breaks down the key components of the state budget — from the General Fund to federal dollars — and shows how these funds work together to power the state’s economy and serve its communities.

jump to: Introduction Governor Gavin Newsom released a summary of the May Revision to his proposed 2025-26 California state budget on May 14, proposing nearly $12 billion in budget actions to close an estimated 2025-26 deficit ($7.5 billion) and build up the state’s discretionary reserve ($4.5 billion). In contrast, the governor’s January proposal projected a … Continued