Press Releases

SACRAMENTO — State Controller Malia M. Cohen today issued the following statement in response to Governor Newsom’s proposed 2026–27 January budget:

“Today’s release of the 2026-27 budget proposal marks the start of months of budget discussions and negotiations. I support the Governor’s plan to preserve and rebuild reserves, keep borrowing in check, and maintain flexibility in the budget so that spending remains prudently aligned with revenues. This approach will better position the State to weather future downturns, protect core services, and safeguard California’s creditworthiness.

“As the State’s Chief Fiscal Officer, I remain clear-eyed that strong revenue years do not eliminate California’s long-term fiscal challenges. Yesterday, I released my December Cash Report which shows that while receipts through December exceeded Budget Act estimates, expenditures are also running higher than expected. That pattern reinforces the need for restraint to avoid locking in ongoing commitments that cannot be sustained over the long term.

“I look forward to working with the Governor and Legislature as they begin the difficult work of finalizing a spending plan that ensures California remains resilient, transparent, accountable, and well-positioned to tackle future economic challenges.”