EV Rebates, Delivery Funds on Newsom Wishlist: California Brief

Jan. 12, 2026, 3:01 PM UTC

The Newsom administration wants California legislators to budget $349 billion for the fiscal year that begins in July, including about $11 billion more for the state’s general fund.

State officials said Friday revenue will rebound on stronger cash receipts, elevated stock prices, and a more favorable economic outlook. The plan would result in a $3 billion deficit.

The forecast might sound too good to be true. After all, a nonpartisan office projected an $18 billion state shortfall. California officials say the main difference is they aren’t assuming there’ll be a stock-market downturn.

“That is a top risk, ...

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