{"id":2086,"date":"2026-05-15T22:31:35","date_gmt":"2026-05-15T22:31:35","guid":{"rendered":"https:\/\/sandiegorelocationnews.com\/index.php\/2026\/05\/15\/gov-gavin-newsom-unveils-his-final-state-budget-here-are-8-key-takeaways-2\/"},"modified":"2026-05-15T22:31:35","modified_gmt":"2026-05-15T22:31:35","slug":"gov-gavin-newsom-unveils-his-final-state-budget-here-are-8-key-takeaways-2","status":"publish","type":"post","link":"https:\/\/sandiegorelocationnews.com\/index.php\/2026\/05\/15\/gov-gavin-newsom-unveils-his-final-state-budget-here-are-8-key-takeaways-2\/","title":{"rendered":"Gov. Gavin Newsom unveils his final state budget. Here are 8 key takeaways"},"content":{"rendered":"<article><!-- --><!-- --><!-- WPS-5038 -- removed the script from WPS and added the placeholder for trinity player --><!-- --><!-- --><!-- --><!-- --><!-- --><!-- --><!-- --><!-- CONTENT --><!--[--><!--[--><\/p>\n<p>Gov. Gavin Newsom presented his final budget proposal Thursday, leaning on a surge of artificial intelligence revenue to close California\u2019s deficit while positioning the state as a counterweight to President Donald Trump. The plan sets up fights over healthcare for immigrants, county funding and structural deficits the next governor could inherit.<\/p>\n<p>Read more <a href=\"https:\/\/sandiegorelocationnews.com\/index.php\/2026\/05\/15\/family-owned-pet-supply-store-to-permanently-close-this-summer\/\">Family-owned pet supply store to permanently close this summer<\/a><\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>Here are eight key takeaways:<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<ul>\n<li>Newsom said he\u2019s following in the footsteps of former Gov. Jerry Brown, with a plan to set the next governor up for success. \u201cWe\u2019re cutting deficits, not corners,\u201d he told reporters.<\/li>\n<li>His plan cuts general fund spending by $1.8 billion and, over the next two fiscal years, raises about $8 billion in new revenues through corporate tax credit limits and new taxes on software.<\/li>\n<li>Republican Senate Budget Committee Vice Chair Roger Niello said the plan will still leave the next governor with ongoing structural deficits starting in 2028. He expressed concern that if the AI bubble bursts, so does the state\u2019s budget plan. \u201cThis stock market looks a lot like the dot-com crash of 25 years ago,\u201d Niello said. \u201cStock markets never go up forever. And the further they go up in terms of inflated values, the harder the fall. And I\u2019m very concerned.\u201d<\/li>\n<li>Medi-Cal premiums \u2014 currently slated to begin in 2027 \u2014 for undocumented immigrants, DACA recipients and other visa holders would rise by $20 to a new $50 monthly premium. Newsom also proposed reinstating asset test limits for Medi-Cal applicants \u2014 moves advocates say will push older adults and immigrants off the rolls.<\/li>\n<li>To offset federal cuts, Newsom proposed a $300 million fund aimed at keeping $0 monthly health plans available for lower-income Californians after Affordable Care Act tax subsidies expired last year. The California Budget and Policy Center predicted as many as 2 million Californians could still lose health coverage.<\/li>\n<li>Counties say they\u2019re being shortchanged in Newsom\u2019s budget. The California State Association of Counties said that Newsom committed just $262 million in one-time funds against a $600 million annual need to handle the additional administrative workload from the Trump administration\u2019s changes to Medi-Cal eligibility. \u201cThere is not funding for hospitals, there is not funding for indigent care, there is not even remotely close to sufficient funding for the eligibility work that is needed to keep people on Medi-Cal,\u201d said CSAC CEO Graham Knaus.<\/li>\n<li>Newsom\u2019s proposed budget also requires community college and K-12 schools offer 14 weeks of paid pregnancy disability leave for employees \u2014 a significant expansion of the state\u2019s parental leave policy for state employees. Costs will be absorbed within a discretionary cost-of-living adjustment provided in the budget proposal.<\/li>\n<li>The California Student Aid Commission\u2019s $503,000 request for cybersecurity needs \u2014 including a backup server and IT staffing \u2014 was excluded from the revised budget, even as the agency warned a cyberattack on its sole server could cut off 2.2 million students from financial aid systems for weeks.<\/li>\n<\/ul>\n<p><!--]--><!--[--><\/p>\n<div>\n<p><em>This report was produced with the assistance of a proprietary tool powered by artificial intelligence based on our own originally reported, written and published content. Before publishing, journalists reviewed this content in compliance with McClatchy Media\u2019s AI policy.<\/em><\/p>\n<p>Read more <a href=\"https:\/\/sandiegorelocationnews.com\/index.php\/2026\/05\/15\/fppc-investigating-steyer-campaigns-10000-payment-to-tiktok-influencer-2\/\">FPPC investigating Steyer campaign\u2019s $10,000 payment to TikTok influencer<\/a><\/p>\n<\/div>\n<p><!-- --><!--]--><!--]--><!-- --><\/p>\n<p>This story was originally published <span>May 15, 2026 at 1:32 PM<span>.<\/span><\/span><!-- --><\/p>\n<p><!-- --><!-- --><!-- --><\/article>\n","protected":false},"excerpt":{"rendered":"<p>Gov. Gavin Newsom\u2019s last budget leans on AI revenues to close the deficit while cutting immigrant health care and shortchanging counties. Here\u2019s what to know.<\/p>\n","protected":false},"author":1,"featured_media":2080,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-2086","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-capitol-alert"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Gov. Gavin Newsom unveils his final state budget. 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