California Gov. Gavin Newsom’s updated May budget plan for the 2026–27 fiscal year projects no deficit for the current budget year or the next, but it has drawn pushback from some Democrats and education groups over proposed spending deferrals and other cuts.
California Gov. Gavin Newsom on May 14 released his annual May budget revision for the 2026–27 fiscal year, proposing a roughly $350 billion spending plan that shows no deficit for the current budget year or the next. (apnews.com)
In an X post highlighted by The Daily Wire, Newsom called the proposal a “balanced budget” and said it “wipes out the deficit this year AND next — while protecting health care and safety nets.” (dailywire.com) The governor’s office similarly said the revised plan eliminates the projected deficit through July 2028 while maintaining reserves and protecting core services. (gov.ca.gov)
The plan has also prompted criticism from some fellow Democrats and education advocates. The Daily Wire reported that Democrats likened parts of Newsom’s approach to Republican-style austerity. (dailywire.com) Separately, education groups have objected to provisions that would temporarily withhold billions in school funding, arguing the deferrals could strain district budgets even if the money is repaid later. (sfist.com)
Newsom has framed his proposal as a contrast with Washington, casting California’s budget stance as fiscally disciplined while warning that federal policy choices could add to national deficits and threaten programs such as health care. (gov.ca.gov)
