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Newsom Casts California as National Blueprint in Final State of the State

He previewed record school funding, homelessness and mental health spending, plus curbs on corporate homebuyers, with a roughly $18 billion shortfall looming.

Overview

  • Newsom framed California as a counterweight to the Trump administration, calling the state a policy model and citing more than 50 legal fights with Washington.
  • Early administration data show a 9% drop in unsheltered homelessness statewide, which he linked to Proposition 1 and CARE Court as he pressed counties to accelerate housing and treatment.
  • He proposed moving the California Department of Education under the governor‑appointed State Board of Education and said his budget sets per‑pupil funding at about $27,418 with full financing for universal transitional kindergarten.
  • The Department of Finance reported $42.3 billion in revenue growth across fiscal years 2025–27, but independent projections point to roughly an $18 billion gap in 2026–27, with the full budget release due Friday.
  • He pledged to work with lawmakers to curb purchases of single‑family homes by large investors, arguing such acquisitions worsen affordability and homeownership access.