California Senate adopts $321.1 billion budget package; lawmakers split over reserves, program choices

The California State Senate on June 27 adopted the final budget package, led by Assembly Bill 102, approving $321,100,000,000 in total spending for the fiscal year and a $228,400,000,000 general fund, with the chamber voting to pass the measure 29–8.

The budget package, as described on the floor by Senator Scott Wiener, funds K–12 education and community colleges, rejects proposed cuts to the University of California and California State University systems, and includes several targeted allocations: $500 million in low-income housing tax credits, $300 million for California Dream for All down payment assistance, $120 million for the multifamily housing program, $100 million for encampment resolution, and $500 million for homeless assistance grants (HAP). Wiener said the package also “provides $15,700,000,000 in combined total reserves for future years.”

Why it matters: The vote concludes the legislature’s work on a budget amid a projected multi‑year revenue shortfall and high federal uncertainty. Supporters said the plan preserves education and social services in a difficult fiscal year while investing in housing, wildfire response and public safety. Opponents complained the process lacked transparency and that the package borrows from reserves and leaves structural deficits in future years.

Key provisions and debate

- Spending and reserves: Wiener told colleagues AB 102 "includes 321,100,000,000…