Jun 29, 2024

Governor Newsom signs 2024 state budget supporting fiscal stability and core programs

What you need to know: 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. Historic reserves and responsible budgeting in recent years enable the state to maintain fiscal stability amid fluctuation in revenues.

SACRAMENTO – Governor Gavin Newsom today signed 2024 state budget legislation that brings stability to state finances while preserving key investments in safety net programs, education, addressing homelessness, mental health care reform, and more. 

As outlined in the agreement announced by the Governor and legislative leaders, the legislation balances the budget in both 2024-25 and 2025-26. It also preserves budget resilience by maintaining $22.2 billion in total reserves at the end of the 2024-25 fiscal year. 

The state has taken several measures to manage revenue volatility in recent budget cycles, including setting aside a record amount of reserves, focusing most of the surplus on one-time and near-term spending instead of potentially unsustainable long-term and ongoing obligations, and paying tens of billions of dollars toward the state’s long-term debt.

“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, health care and other priorities that matter deeply to Californians. I thank the Legislature for their partnership in delivering this sound and balanced plan.”

Governor Gavin Newsom

The budget addresses a $46.8 billion shortfall through a balanced package of solutions, including spending reductions of $16 billion. 

It avoids deep program cuts, maintaining 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. Additional details on the 2024 state budget can be found in this fact sheet.

California remains the 5th largest economy in the world and for the first time in years, the state’s population is increasing and tourism spending recently experienced a record high. California is #1 in the nation for new business starts, #1 for access to venture capital funding, and the #1 state for manufacturinghigh-tech, and agriculture.

The Governor today announced signing the following bills:

  • AB 160 by the Committee on Budget – Medi-Cal managed care organization provider tax.
  • AB 2927 by Assemblymember Kevin McCarty (D-Sacramento) – Pupil instruction: high school graduation requirements: personal finance.
  • SB 108 by Senator Scott Wiener (D-San Francisco) – Budget Act of 2024.
  • SB 109 by Senator Scott Wiener (D-San Francisco) – Budget Act of 2023.
  • SB 153 by the Committee on Budget and Fiscal Review – Education finance: education omnibus budget trailer bill.
  • SB 159 by the Committee on Budget and Fiscal Review – Health.
  • SB 164 by the Committee on Budget and Fiscal Review – State government.
  • SB 175 by the Committee on Budget and Fiscal Review – Taxation.
  • SB 1524 by Senator Bill Dodd (D-Napa) – Consumers Legal Remedies Act: advertisements: restaurant, bar, and other food services.

For full text of today’s bills, visit: http://leginfo.legislature.ca.gov.

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