Newsom signs 2024-25 budget

Gov. Gavin Newsom has signed the 2024-25 state budget which will support fiscal stability and core programs. The Governor signed legislation reflecting the final budget agreement with the Legislature, delivering a budget that is balanced over the next two fiscal years, while maintaining investments in core programs.The state budget legislation will bring stability to state finances while preserving key investments in safety net programs, education, addressing homelessness, mental health care reform, and more. It will balance both the 2024-2025 budget. It will also preserve budget resilience by maintaining $22.2 billion in total reserves at the end of the 2024-25 fiscal year.
Thus far the state has taken many measures in order to manage revenue volatility in recent budget cycles which includes setting aside a record amount of reserves, with a focus on most of the surplus one-time and near-term spending instead of potentially unsustainable long-term and ongoing obligations, and paying billions of dollars towards the states long-term debt.
Newsom said of the budget, “This is a responsible budget that prepares for the future while investing in foundational programs that benefit millions of Californians every day. Thanks to careful stewardship of the budget over the past few years, we’re able to meet this moment while protecting our progress on housing, homelessness, education, healthcare and other priorities that matter deeply to Californians. I thank the Legislature for their partnership in delivering this sound and balanced plan.”
The budget will address a $46.8 billion shortfall through a balanced package of solutions, including spending reductions of $16 billion. The program will avoid deep program cuts and maintain service levels for several priority issues including Proposition 98 funding for education and investments in Medi-Cal expansion, encampment resolution grants, nonprofit security grants, summer food assistance,updated foster care rates and more.