Governor Touts Balanced May Budget Revision
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Governor Gavin Newsom released the May Budget Revision (May Revise) for 2026-2027 this week touting a balanced state budget through July 2028. The proposed $246.6B General Fund budget also contains $1.8B in reduced spending.
The May Revise is an update to the governor’s January budget plan, which had a projected $2.9B shortfall. The May Revise states the improved forecast reflects increased revenue from personal income taxes, capital gains and an upgraded stock market outlook.
“We’re balancing the budget, eliminating the deficit, cutting spending and building reserves – all while protecting healthcare, education, and essential services for Californians,” Governor Newsom said.
Agriculture
Modest new funding in the May Revise provided to the California Department of Food and Agriculture (CDFA) includes (abbreviated list):
Modest new funding in the May Revise provided to the California Department of Food and Agriculture (CDFA) includes (abbreviated list):
· $10.5M in one-time funding for Plant Health and Pest Prevention Programs for fruit fly
activities
· $204K ongoing for Agricultural Statistics and Reporting due to the United States
Department of Agriculture (USDA) National Agricultural Statistics Service restructuring
at the federal level
· $900K in one-time funding for Biocontrol Facility repairs where work is conducted to
minimize the impact of noxious invasive weeds and exotic pests
Unchanged from the January budget is the following funding at CDFA (not a comprehensive list):
· $23M in one-time funding – Enteric Methane Incentives
· $25.2M ongoing funds – Farm to School program
· $25.9M Prop 4 Climate Bond funding for the Healthy Soils Program
For additional details regarding CDFA funding in the governor’s May Revise, go to the Learn More link below.
What’s Next?
State legislators are reviewing the May Revise, and California constitutionally required to pass a balanced state budget by June 15. The next fiscal year begins July 1.
To read the governor’s overview of the May Revise covering healthcare, housing, education and more, click HERE.
CDFA’s one-page summary of the May Revise is available HERE.