Overview
- The $348.9 billion proposal pares the near-term gap to $2.9 billion by assuming a $42.3 billion, three-year revenue surge concentrated in AI-fueled tech stock gains.
- The budget summary warns the surge may be temporary, and the Legislature’s analyst cautions revenues could miss the mark and estimates a deficit closer to about $18 billion.
- Education outlays rise with $27,418 per student, universal transitional kindergarten for more than 400,000 four-year-olds, and two free school meals each day.
- The plan adds $1.1 billion to Medi‑Cal to offset federal cuts, creates a $200 million EV rebate to replace expired federal incentives, and allocates $314 million for wildfire and forest resilience.
- Housing and transportation advocates say the draft falls short on affordable housing, transit operations, and active transportation, with hearings and a May revision ahead of the June 15 deadline.