The Governor's proposed Fiscal Year 2026-27 budget was released on Friday, January 9. While the FY 2026-27 budget appears to be in better shape than anticipated, the Governor's proposal identifies an expected $22 billion deficit for FY 2027-28 and shortfalls in the following two years. This Department of Finance summary document outlines some of the proposed expenditures and initiatives for 2026. The 2026-27 numbers are the Governor’s proposal, and the Legislature will now have an opportunity to weigh in and negotiate Prop 4 allocations; some of the numbers could change. The Administration does not have a proposal to address the APA Exemption issue. CCLT is actively pushing the Legislature to pass AB 35 (Alvarez) and we encourage you to reach out to your Assemblymember or Senator if you have not done so already.