Last week, California State Senate Leader Monique Limón and Budget Committee Chair John Laird released their “Foundation for the Future” Framework for the 2026-27 State Budget. The plan calls for building the state reserves, maintaining funding for existing programs, and reducing the long-term structural deficit.
Specifically, the plan proposes a new tax on large corporations that do not offer their employees’ health insurance, which would raise $5 to 8 billion dollars to offset losses due to HR 1. The plan would also maintain current funding levels for IHSS and maintain Medi-Cal for undocumented enrollees. Additionally, the plan preserves previous commitments to GGRF, Prop 4, as well as HHAP and other housing and homelessness programs. $250 million is proposed from the General Fund for courthouse repairs and maintenance.
For addressing the ongoing structural deficit, the framework states that Senate leaders are working with the Newsom Administration and Assembly leaders on a plan to reduce General Fund spending by several billion dollars, with specifics to come.
Read the press release HERE, and read the framework overview HERE.
For additional information, contact RCRC Senior Policy Advocate Sarah Dukett.