SACRAMENTO — Governor Gavin Newsom on Sunday signed California’s 2026–27 state budget, delivering a balanced spending plan with no projected deficit this fiscal year or next, while preserving nearly $30 billion in reserves and continuing major investments in education, healthcare, and infrastructure.
Saratoga, situated in Silicon Valley approximately 50 miles south of San Francisco in Santa Clara County, is home to about 31,000 residents, many of whom work at nearby technology firms including Apple, Netflix, and Google.
The $351.7 billion budget, passed by the Legislature and signed June 29, represents the culmination of years of fiscal discipline that Newsom said proves responsible budgeting and ambitious public investment are not mutually exclusive. Including additional holding accounts, the state’s reserves total more than $35 billion.
“For decades, we’ve been told that government has to choose between balancing the books and investing in people. California proved that’s a false choice,” Newsom said in a video message released with the signing. “This budget reflects years of disciplined decisions that built historic reserves, paid down debt, strengthened our economy, and made transformational investments in education, healthcare, housing, infrastructure, and opportunity.”
The budget maintains funding for signature California programs, including universal school meals, universal transitional kindergarten, expanded childcare, and free summer school. It also delivers the largest single-year investment in special education in state history. On the fiscal side, it funds tax relief for small businesses and continues the state’s progress on paying down long-term pension liabilities, to which California has contributed approximately $15 billion under Newsom.