State Budget Signed: What the 2026 Budget Act Means for Counties

Amid the general rush leading up to the Legislature’s summer recess, the Governor signed the 2026-27 state budget on Monday, June 29, 2026. The “three party” (Assembly, Senate, and Administration) budget agreement maintains a balanced budget for the next two fiscal years and prioritizes building reserves. Although the state’s fiscal position has steadily improved since the release of the Governor’s 2026-27 January budget proposal, the final state budget includes adjustments to spending and revenues that results in reduced investments overall, with funding for some key county priorities maintained.   

CSAC’s press release on the final budget agreement is available here.   

Read CSAC’s Budget Action Bulletin for more details about what is included in the 2026-27 state budget by policy area.   

While the final budget agreement assumes less General Fund revenue than the Legislative Budget Plan, the final budget agreement preserved critical investments to help counties maintain healthcare, homelessness services, and other essential programs, while recognizing counties’ central role in delivering those services. However, the final budget agreement does not adequately fund all of CSAC’s budget priorities and we remain committed to advocating for county governments and the resources needed to deliver critical services that Californians rely on.  

Please do not hesitate to contact CSAC legislative affairs staff with questions about specific policy areas.