What’s at Stake? Governor Newsom’s 2025 – 2026 State Budget Proposal

As California faces threats from federal budget and policy proposals amid an anticipated flat (no-growth) budget for its 2025 – 2026 fiscal year, strategic choices grounded in values of racial and economic equity are needed to ensure that all residents can thrive. The state’s budget process holds the key to determining which policies will create a more equitable California, and philanthropy has an important opportunity to influence these outcomes over the course of the state’s budget cycle from January to June. 

Last year, California’s budget deficit resulted in cuts to important programs impacting housing and homelessness, the social safety net, climate resiliency and much more. These cuts disproportionately affected women, children, low-income families, rural communities, and neighborhoods of color, leaving nonprofits and direct service organizations to shoulder even more of the burden. This year, despite higher than anticipated revenues, the state is still facing no significant growth and has stated they have no capacity for new spending commitments. At the same time, federal budget and policy proposals could significantly reduce state revenues and leave state leaders with difficult decisions about whether to increase funding to fill gaps due to cuts in federal funding and whether to raise revenues at the state level to help cover the costs. 

Join us in conversation about Governor Newsom’s 2025-26 budget proposal, key implications, and short- and long-term structural solutions to ensure a fiscally responsible state budget that reflects values rooted in racial equity and economic inclusion. We’ll discuss the challenges posed by federal proposals, the state fiscal landscape, and the shifting political climate. We’ll explore the role philanthropy can play during turbulent times for policymaking and how the field can support community-based organizations and advocates working toward transformative policy changes and equitable public investments for their communities. 

Outcomes: 

• Understand the role philanthropy can play to support a fiscally resilient, responsive, and responsible state budget 
• Explore how philanthropy can support community-based organizations and advocates as they experience the impact of budget shifts in their communities
•  Seed ideas for potential collaborations between funders, policy makers, and advocates