Overall Budget Picture
California’s overall economic picture has performed better than
projected compared to the Budget Act of 2025. The Governor’s
Budget proposes a $348.9 billion balanced budget with
General Fund expenditures of $248.3 billion. The
stronger-than-anticipated performance of the economy, stock
market, and cash receipts have contributed to an upgraded
revenue
forecast, with General Fund (GF) revenues coming in higher by
approximately $42.3 billion, or 6.7 percent, across the budget
window (FYs 2024-25, 2025-26, and 2026-27). The revenue