01/10/2026
California announces new budget plan, increasing reserves but being cautious with spending [Report]
https://radiokorea.com/news/article.php?uid=488701
The state of California has announced its new fiscal year budget, which includes a $23 billion reserve fund.
The budget aims to strengthen fiscal stability by expanding reserve funds and repaying pension liabilities, while also preparing for economic uncertainty and maintaining existing policies in areas such as education, health, housing, and homelessness.
πΊπ»ποΈποΈπ°π‘
California Governor Gavin Newsom unveiled his balanced spending plan for the 2026-27 fiscal year, reflecting the state's existing economic strength, higher-than-expected tax revenues, and a state reserve of approximately $23 billion.
Governor Newsom stated that the state's economy is strong, revenues are higher than expected, and fiscal stability is maintained thanks to years of prudent fiscal management. He added that the state is maintaining existing policies and focusing on sustainable progress rather than overexpansion. He emphasized the need to continue investing in programs that residents rely on, such as education and public safety, and to build reserves while also preparing for uncontrollable federal volatility.
The current fiscal year's budget, at $34.89 million, reflects a general fund increase of more than $42 billion over the past three years.
π¦πΈπ°
This includes a $23 billion reserve, of which $14.4 billion is a Rainy Day Fund.
This recognizes the severity of the fiscal deficit, prioritizes fiscal austerity and long-term planning while focusing on existing investments.
Furthermore, it aims to prepare for economic uncertainty stemming from unpredictable federal government policies, such as tariffs and immigration.
This budget also includes expanding the reserve fund to improve budget stability and investing $11.8 billion over the next four years to reduce pension liabilities.
A key focus of this budget is investment in education.
It includes funding for transitional kindergarten, a pre-elementary program, to operate as a full-time program, providing free education to more than 400,000 four-year-olds. Proposals also include free before- and after-school programs, summer programs, and free school meals.
ππ
There are also plans to expand investments in UC, CSU, and community colleges.
π π‘ποΈποΈ
Funding for housing and homelessness includes $500 million in homelessness prevention assistance and funding for affordable housing. An additional $190 million is earmarked for public safety.
βοΈπ§―π
The state government recently noted a decline in overall crime rates and explained that this investment is based on effective strategies to reduce crime. The budget also includes subsidies for zero-emission vehicles, improvements to water and sewage systems in small communities, and efforts to address climate change, including strengthening wildfire response and forest management.
Yang Min-ah reporting from Radio Korea.
β‘οΈβ‘οΈβ‘οΈβ‘οΈβ‘οΈ
π΄π΄
.com
ππππΊοΈπ
μ ννκ³ λΉ λ₯Έ λ΄μ€ λΌλμ€μ½λ¦¬μ λ΄μ€