
Gov. Gavin Newsom will deliver his preliminary state spending plan today — his final budget proposal as California’s governor. On his plate: A projected $18 billion budget gap for 2026-27; the loss of some federal funding; and continued economic uncertainty under President Donald Trump.
During his State of the State address Thursday, the governor dropped hints about his budget, including “significant investments in public education” that entails fully funding the state’s universal transitional kindergarten program, an additional $1 billion to expand high-need schools and more than $27,400 investment per student. (In 2022–23, the state spent about $20,500 per pupil, or $2,800 more than the national average of nearly $17,700).
Newsom also plans to overhaul how California’s schools are run: The governor-appointed, 11-member State Board of Education would take over the California Department of Education, writes CalMatters’ Carolyn Jones. This would give the governor more influence over the education system. Currently, schools sometimes get conflicting messages on how students should be taught, and this change could lead to kids getting more consistent instruction.
The governor also addressed California’s housing shortage during his speech, arguing that investors are “snatching up homes by the hundreds and thousands at a time, crushing the dream of home ownership.”
It’s a sentiment Newsom shares with Trump, report CalMatters’ Ben Christopher and Jeanne Kuang. Though details remain scant for now, Newsom’s administration plans to work with the Legislature to curb housing ownership by corporate landlords. But some evidence suggests that the issue is overblown: Companies that own at least 10 properties own fewer than 3% of all single-family homes in California.
More specifics about how Newsom wants to fund education and housing will likely be revealed in today’s budget plan, as well as homelessness and mental health services and Medi-Cal. As Jeanne explains, the governor presented an optimistic financial outlook during his State of the State, saying that revenues came in $42 billion higher than expected.
These gains could help Newsom avoid conflict with Democratic lawmakers over program cuts during budget negotiations, though progressives said they’ll continue to push for new taxes — such as a proposed “billionaires tax” that Newsom opposes — to counteract federal cuts.
CalMatters events: On Feb. 5 CalMatters’ Adriana Heldiz will host a panel to discuss trauma-informed care: How it can shape the future of education, what it takes to sustain it and how policymakers can support more programs like it statewide. Register here to attend in person in Chula Vista or virtually.
Other Stories You Should Know
Faculty diversity still lacking in academia

Though the number of Latino college students is growing at a faster clip, the number of Latino faculty members who can help mentor these students remains lacking, write Angel Corzo and Brittany Oceguera of CalMatters’ College Journalism Network.
All but one of California State University’s 22 campuses have at least 25% of full-time Latino undergraduate students. Yet, as of fall 2024, only 15% of Cal State instructors are Latino. To reach parity with the number of Latino students, the university system would need to hire more than 13,000 Latino educators.
A spokesperson for Cal State cites low national numbers of Latinos entering graduate programs for the lack of Latinos in academia. Faculty members also argue that limited mentorship and low promotion of programs that help Latinos earn doctoral degrees act as barriers.
As a result, Latino educators — who oftentimes are in non-tenured positions with lower pay — find themselves taking on more mentorship tasks.
- Dirk Horn, a Latino political science lecturer at Cal State Bakersfield: “There’s a lot of cultural taxation. That’s the biggest problem with a lack of diversity in higher education, the diverse faculty take on more work.”
These organizations can help with post-fire soil testing

Modern houses are brimming with synthetic chemicals and materials that can be found in numerous possessions such as electronics, furniture and cookware. When flames consume homes, remnants of these chemicals, metals and plastics are released in the air or settle in the soil.
But in the aftermath of the Palisades and Eaton fires a year ago, no federal- or state-sponsored soil testing took place, reports Katharine Gammon for CalMatters. Instead, other organizations have been forced to step in.
Los Angeles County Public Health, for example, set aside as much as $3 million to fund free soil lead testing for residents living near the wildfires’ burn areas. CAP.LA, funded by the R&S Kayne foundation, connects people with free soil and water testing. The University of Southern California also launched a soil testing program known as USC Clean.
Read more in our FAQ to learn how you can get your soil tested and reduce the risk of soil contamination.
And lastly: Asylum seeker released

Seven weeks after federal authorities detained a San Diego immigrant from Turkey, a federal judge has found the detention unjustified. The asylum seeker, Idris Demirtas, was arrested in November during a routine check-in with immigration enforcement officers, and U.S. taxpayers paid an estimated $10,400 for his detainment. Read more from CalMatters’ Wendy Fry.
California Voices
CalMatters columnist Dan Walters: The State of the State was arguably the most cogent address Newsom delivered as governor, though it ignored, downplayed or rationalized some of California’s most vexing issues.
When a fire destroys a Black family’s home, it compounds generations of dispossession, and racial justice must extend to how we prepare for, respond to and recover from catastrophe, writes Zella Knight, fire survivor and community advocate from Altadena.
To fix California’s insurance market crisis, the state needs to recommit to free markets, actuarial soundness, managing wildfire risks and allowing private sector innovations, writes Stacy Korsgaden, an owner of an insurance and financial services agency who is running for Insurance Commissioner.
Other things worth your time:
CA lawmakers decry ICE shooting of Minneapolis woman // Los Angeles Times
Trump administration pulls $160M in highway funds from CA over immigrant trucker feud // San Francisco Chronicle
CA law let a politician avoid jail for child abuse charges. Lawmakers are furious // Los Angeles Times
Tech titans divided over whether to pay billionaire tax or flee CA // The Guardian
Silicon Valley plots against Ro Khanna after his support for a wealth tax // The New York Times
Life after Pelosi: SF House candidates square off for first time // The San Francisco Standard
‘Active shooter’ or ICE agent’s victim? What happened in LA’s NYE killing? // Los Angeles Times