In a Nov. 10, 2026 release, the governor's office said California's top three revenue sources came in $7.7 billion higher than projected since April and that the state projects a zero deficit for two years.

The release presented the state as a $4.5 trillion economy that has grown by more than 50%, or $1.5 trillion, since Governor took office; it said California received $366 billion in venture capital as of August 2026 and that 75% of U.S. startup funding this year went to California companies.

The release cited labor and productivity gains: it said wages are 20% above the national average, California added 129,300 of the nation’s 496,000 net payroll jobs from Sept. 2025 through Sept. 2026, and unemployment fell by 106,500 over ten consecutive months through September.

The release said voters approved Proposition 2, which raises the rainy‑day fund deposit cap from 10% to 20% of tax revenue; the office framed that change as enabling bigger deposits during economic booms.

The release said Newsom's final bill as governor seeks to put a $7.5 billion research bond before voters, and it listed recent legislation Newsom signed to update antitrust laws, expand building-plan review options for some tenant improvements, protect small businesses from abusive financing, broaden small-business technical assistance, remove a regulatory barrier to E15 fuel, create a statewide fusion strategy, allow streamlined pop-up permits for vacant storefronts and extend the California Competes Tax Credit through 2032–33.

The administration said higher receipts and Prop. 2 will let the state build reserves; the release also highlighted business-facing changes it said would speed openings, reduce some costs and attract investment.

The release, which framed the figures as a rebuttal to Republican critics, did not include the underlying budget projections behind the two-year zero-deficit figure.

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Gavin Newsom

Governor · Democrat

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