California Governor Proposes $349.9 Billion Budget for 2026-27, with $150 Billion Increase from Previous Years The governor's revised 2026-27 budget proposes a total spending level of $349.9 billion, which is the highest of Newsom's governorship and a nearly $150 billion increase from his previous budgets. The budget includes significant increases in spending on schools, healthcare, and social programs, with an emphasis on TK-12 programs and special education. The governor's revised 2026-27 budget proposes $349.9 billion in total spending and $246.6 billion from the general fund, which is the highest total spending level of Newsom's governorship and a nearly $150 billion increase from his previous budgets. Critics accuse Newsom of living in a 'fantasyland' and using mathematical magic to present a rosier picture than expected. The budget includes significant increases in spending on schools, healthcare, and social programs, with an emphasis on TK-12 programs and special education. Newsom also proposes nearly $2.4 billion in additional special education funding and 14 weeks of paid pregnancy leave for TK-12 and community college employees.However, state Sen. Tony Strickland doubts the accuracy of the numbers in the budget, citing Newsom's 'history of living in Fantasyland.