Overview
- The plan closes a $12 billion shortfall using reserves, special-fund transfers and deferred payments
- Progressive priorities are scaled back with new Medi-Cal enrollment paused for undocumented adults from 2026, a $30 monthly premium for certain enrollees under 60 starting in 2027 and reductions to mental health, dental and fertility services
- The budget redirects $1 billion from cap-and-trade to firefighting and omits a guaranteed $1 billion annual allocation for the high-speed rail project
- It allocates $80 million to implement a voter-approved crime measure, funding behavioral health beds, pre-trial services and court operations
- A poison-pill provision nullifies the entire spending plan unless SB 131 is enacted by June 30 to advance housing and infrastructure reforms