Gov. Gavin Newsom on Tuesday announced a $322.2 billion budget for 2025 through 2026 that would be balanced with $16.5 billion in additional revenue.
According to a summary of the plan, the budget includes $1.2 billion in savings from eliminating 6,500 government positions. The budget also counts on "operational efficiencies like reduced travel budgets, printing costs, and IT modernizations that further reduce costs by $3.5 billion."
The additional revenue is due "to a stronger economy, stock market, and cash receipts," the summary says.
The Department of Finance will lead a full budget briefing on Friday.
In a post on X, Assembly Minority Leader James Gallagher called Newsom's proposal "clueless" and said it "doesn’t acknowledge we are broke and facing big deficits."
During the final stop of his Jobs First Tour where he announced the budget, Newsom also joined local officials to announce the State Rail Plan, projected to create nearly 900,000 jobs and "a zero-emission, fully interconnected rail and transit network by 2050."
California High-Speed Rail Authority CEO Ian Choudri said the plan will ensure transportation connection between the Bay Area, Central Valley and Los Angeles, and advance economic and environmental benefits.
But Republican legislative leaders say he is wasting federal dollars in regions critically in need of better water infrastructure.
