The Overview
Your tax dollars are already on the move, thanks to California's new state spending plan for the 2026–27 fiscal year. California's Budget Act of 2026, Assembly Bill 113, amends the state's main budget law to adjust appropriations for state government, and Gov. Gavin Newsom (D) signed it Sept. 18.
In November 2025, the Associated Press, citing the nonpartisan Legislative Analyst's Office, reported that California faced a projected $18 billion deficit the following year. The law took effect immediately upon signing as an urgency statute.
What the Law Does
The law amends the Budget Act of 2026 by adding, changing, and repealing specific items of appropriation for the support of state government during the 2026–27 fiscal year. That means money already allocated under the original budget was adjusted up, down, or removed entirely to reflect the state's updated fiscal picture.
Among the funded items, the Santa Barbara Independent reported that $2.5 million went to Goleta Community Center and Goleta Valley Library improvements. The Davis Enterprise reported that $50 million continued funding for farmland and ranchland conservation. The Los Banos Enterprise reported that the signed state budget included $5 million for a hexavalent chromium groundwater well treatment project in Los Banos. The California Arts Council said the law included significant state investments in arts and culture.
Legislative Status
Asm. Jesse Gabriel (D-CA-46) sponsored the bill. The Assembly passed it 53 to 17 on March 20, 2025. The Senate passed it 29 to 4 on Sept. 1, and the Assembly then concurred in the Senate's amendments 61 to 11 the same day. The final Assembly vote, with 61 yes votes, was the strongest showing of the three recorded tallies, reflecting broad support for the revised spending plan as it crossed the finish line.
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