May 15, 2025
You’ve seen the headlines by now.
Governor Newsom released a revised budget for the next fiscal year. The budget spends $322 billion and has a nearly $12 billion deficit that will be paid down by the state’s reserves.
Newsom is proposing cuts to just about everything (except California High Speed Rail, more on that below, and water reclamation projects) and a freeze on salaries for state workers. Now that the dust has settled, let’s look at what the Governor is proposing for the budget that begins on July 1.
But first, a reminder that the Governor proposing a budget doesn’t mean it will be passed by the legislature the way it’s written. Even in a state dominated by one political party, the legislature negotiates with the Governor before passing a final budget for the Governor to sign. For example, just last year, the legislature rejected proposed cuts to inter-city rail and the popular and over-subscribed Active Transportation Program and was able to restore some, but not all, of the funding.