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California AB 111: Proposed Budget Act of 2026

AB 111 is California's proposed state budget bill for the 2026 fiscal year. The legislation sets overall spending levels, revenue allocations, and funding priorities for state government programs and services. The bill has been amended and referred to the Senate Budget and Fiscal Review Committee, with a hearing scheduled for June 29, 2026. As the annual budget act, it determines how state dollars are distributed across areas such as education, health care, public safety, infrastructure, and social services.

✓ REASONS TO SUPPORT

  • Passing a budget on time gives state agencies certainty about their funding, helping them plan and deliver services without interruption.
  • The budget allocates resources to public priorities such as schools, health programs, and public safety that Californians rely on every day.
  • Approving the spending plan allows the state to meet its legal obligations, including payments to employees, vendors, and local governments.
  • A finalized budget can unlock federal matching funds that depend on the state committing its share of spending.

✕ REASONS TO OPPOSE

  • Critics may argue the spending levels are too high, potentially increasing the state's long-term debt or drawing down reserves needed for future downturns.
  • Amendments made close to the vote may not have received sufficient public scrutiny, raising concerns about transparency and accountability.
  • Certain programs or regions may receive less funding than requested, leaving some community needs unmet under the proposed allocations.
  • If projected revenues fall short, the spending commitments in the budget could force difficult mid-year cuts to services.

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