California Competes’s Analysis of the Governor’s 2026-27 Budget Proposal

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New Analysis: Understanding the Governor’s Budget Proposal

Each January, the Governor’s budget proposal opens the conversation about California’s fiscal priorities. Our analysis examines what it means for higher education and workforce policies affecting millions of students and workers across the state.

Governor Newsom’s 2026–27 budget proposal includes increased funding for public higher education, alongside some deferred commitments. This comes against the backdrop of a structural deficit and broader economic and federal funding uncertainty that complicates the outlook.

Our analysis covers:

  • Proposed funding increases and deferrals for each of the state’s three public higher education segments
  • Planned investments in higher education coordination, workforce development, and college access and affordability
  • An overview of the state’s fiscal context that can impact California higher education
  • Key questions for policymakers to consider as they help shape higher education funding priorities

Read our analysis to better understand what’s at stake for students, institutions, and the state, plus key considerations as the budget process moves forward.


Upcoming Webinar on Strengthening College ROI

Join our March 31 webinar to explore new research on how college ROI differs by race/ethnicity, sex, region, and degree type across the state. You’ll gain a clearer understanding of where the system supports learners and where structural barriers leave them behind, along with actionable insights on strengthening college-to-career pathways that support equitable opportunity and shared prosperity.

For media inquires, please contact:
Carolyn Ho California Competes

Carolyn Ho

Director of Communications

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