The Abridged version:
- Gov. Gavin Newsom released his $348.9 billion budget proposal for the 2026-27 fiscal year on Friday morning, revealing a few boons for the four-county region.
- State offices in downtown Sacramento and the Capitol building could see $202.6 million in renovations in the coming years.
- Boosts for Lake Tahoe, local flood control and the planned California Indian Heritage Center in West Sacramento are also detailed.
The Sacramento region could see a few boons to downtown and increases for local environmental efforts under Gov. Gavin Newsom’s new state budget proposal.
Unveiled Friday morning, the $348.9 billion spending blueprint for the 2026-27 fiscal year estimates a “modest shortfall” of $2.9 billion, compared to a $18 billion deficit projected by the nonpartisan Legislative Analyst’s Office.
Friday’s announcement by Director of Finance Joe Stephenshaw marked the beginning of a monthslong budget process. State lawmakers will deliberate before Newsom submits his revised budget, with updated revenue estimates, in May. State legislators have until June 15 to pass the budget, and the governor has until the end of June to sign it.
Here are the highlights of what Newsom’s proposal has in store for the Sacramento, Yolo, Placer and El Dorado counties:
Upgrades to the Capitol and state offices
His plan calls for $202.6 million in renovations of state buildings in downtown Sacramento.
The state is continuing its construction of the new Capitol Annex, anticipated for completion in 2027. Dollars would also go toward renovation of the Warren-Alquist State Energy Building at Ninth and O streets and the Blue Anchor building at 10th and N streets.
Vast cuts of vacant state worker positions would continue. Last year, an effort began to eliminate roughly 6,000 vacant positions.
Momentum for California Indian Heritage Center
The California Indian Heritage Center in West Sacramento would also receive more funding. The budget proposes an additional $2.1 million to spur construction of the new 51-acre center, which would replace the State Indian Museum next to Sutter’s Fort in Midtown Sacramento.
Plans for the new center, at the confluence of the Sacramento and American Rivers, have been underway since 2019.
Boost for Lake Tahoe and conservation efforts
The governor wants to set aside $21.1 million over the next five years for the California Tahoe Conservancy.
Those dollars are earmarked for upgrades to the 725-acre Van Sickle Bi-State Park near Stateline and a new bike trail. The funds could also go toward helping the conservancy acquire and restore more environmentally sensitive land near Lake Tahoe.
More dollars would go toward a new dorm for the California Conservation Corps in El Dorado County as well. The budget proposes $12.3 million to finish the new Greenwood Residential Center, about 15 miles away from Auburn.
The site has room for 100 corps members and 24 full-time staff that provide conservation work and youth development programs. The new center is slated to open in July, according to the proposed budget.
Waterways and flood control in the works
Newsom’s budget also dedicates big bucks to water projects and flood control. About $232 million is proposed in total for the state’s flood control efforts, which would include upgrades to levees, weirs and bypasses in the Sacramento-San Joaquin Delta.
The budget earmarks $14 million for levee safety projects in the Delta. A five-year plan underway also includes flood improvements around the Sacramento and American rivers and the Yolo Bypass.
Felicia Alvarez is a reporter at Abridged covering accountability. She’s called Sacramento home since 2015 and has reported on government, health care and breaking news topics for both local and national news outlets.