House Bill 26-036

The FY 2026–2027 San Andreas budget totals $55.0 billion, including $19.8 billion in General Fund spending, and reflects a moderate increase driven largely by constitutional and statutory obligations. The budget prioritizes K-12 education and Medicaid, which together account for the majority of new spending, with notable investments in per-pupil funding increases, special education, and rising health care costs tied to caseload growth and provider rates. Additional funding supports transportation infrastructure, wildfire response, and housing affordability, while most transportation spending continues to rely on dedicated cash funds rather than the General Fund.

Despite these investments, the budget maintains a cautious fiscal approach due to slowing revenue growth and constitutional spending limits. A 15% General Fund reserve and a $2.0 billion stabilization fund are preserved to guard against economic uncertainty, and the Joint Budget Committee emphasizes limiting ongoing spending commitments by prioritizing one-time expenditures where possible. While the budget addresses immediate needs in education, health care, and public safety, it also highlights ongoing structural pressures—particularly in Medicaid and school finance—that are expected to constrain future budgets.