Governor Gavin Newsom’s proposed 2026-2027 budget is out. The budget calls for almost 349 billion in state spending–and includes a projected shortfall of 2.9 billion. That is much less than an earlier forecast of an 18 billion dollar shortfall. from the Legislative Analyst’s Office. The governor says his smaller forecast is partlybecause while the Legislative analysts predict the stock market will go down, his projection does not==amnd because state revenue is higher than expected for the past few months.