Governor Newsom signs 2024 state budget supporting fiscal stability and core programs

SACRAMENTO – Governor Gavin Newsom today signed 2024 state budget legislation that brings stability to state finances while preserving key investments in safety net programs, education, addressing homelessness, mental health care reform, and more. 

As outlined in the agreement announced by the Governor and legislative leaders, the legislation balances the budget in both 2024-25 and 2025-26. It also preserves budget resilience by maintaining $22.2 billion in total reserves at the end of the 2024-25 fiscal year. 

The state has taken several measures to manage revenue volatility in recent budget cycles, including setting aside a record amount of reserves, focusing most of the surplus on one-time and near-term spending instead of potentially unsustainable long-term and ongoing obligations, and paying tens of billions of dollars toward the state’s long-term debt.