On May 14, Governor Newsom released the May revision to the initial 2025-2026 California budget proposal that was released in January. The May Revise proposes a total expenditure of $321.9 billion, representing a $300 million decrease from the January estimate. Despite a projected surplus in the January budget, changing national economic conditions and increased expenditure growth (especially in Medi-Cal) have resulted in a $12 billion deficit in the updated budget. In 2024, the budget’...
