On Thursday, May 14, Governor Newson released his Administration’s May Revision of the 2026-27 state budget. This revision is the next step in the State’s budget negotiations with lawmakers, who must pass a budget by June 15 for the July 1 start of the 2026-2027 fiscal year. RCRC’s Rural Rundown captures highlights of the latest proposal as it relates to RCRC member counties.
The Governor’s 2026-27 May Revision proposes a budget of $349.4 billion. The budget reflects revenues of $328 billion, despite caution from the Legislative Analyst’s Office that the state is at or near a revenue peak due to enthusiasm around AI and the related stock market boom. The May Revision reflects an upgraded forecast driven by three-year General Fund revenues that are $16.5 billion higher than what was projected in January, continuing the Governor’s multi-year approach. While the Governor’s 2026-27 May Revision does reflect continued growth, it also provides for deposits into the state’s budget reserve accounts.
Read more in RCRC’s Rural Rundown HERE.
For additional information, contact RCRC’s Government Affairs Team.