local
Newsom, California Legislature reach $351.7-billion budget deal
By Taryn Luna at Los Angeles Times - California
· June 27, 2026
· 1 min read
The agreement ends weeks of lobbying by outside interests and negotiations among Democrats in the California Legislature and Gov. Gavin Newsom about how to handle a surge of income tax collected on stock market gains related to artificial intelligence.
Key takeaway Gavin Newsom about how to handle a surge of income tax collected on stock market gains related to artificial intelligence.
Why this matters in The Los Angeles
The newly reached budget deal will have significant implications for Los Angeles , given the city's substantial presence of tech companies and startups involved in artificial intelligence. As the state's largest city, Los Angeles is likely to feel the effects of the budget agreement, particularly in terms of potential investments in education and workforce development programs tailored to the AI sector. The city's residents, many of whom are employed in the tech industry, will be watching closely to see how the state's surplus is allocated to support local economic growth and address issues such as housing affordability and transportation infrastructure. With the city's economy closely tied to the state's fiscal decisions, the budget deal's impact on Los Angeles will be an important aspect to monitor in the coming months. Local leaders will be looking for opportunities to leverage the state's investment to drive innovation and job creation in the city.
About this story
Original reporting by Los Angeles Times - California . The Los Angeles surfaces reporting from trusted publishers and adds local editorial context so readers can quickly understand what a story means for their community. We attribute every source, link to the original report, and follow a documented editorial standards policy. To understand how stories are selected and reviewed, read our about page .
For the complete original report, visit Los Angeles Times - California . Have a tip or correction? Contact our newsroom .
Category: local ·
Published: June 27, 2026 ·
Source: Los Angeles Times - California ·
Reading time: 1 min
Get more The Los Angeles stories like this
Free weekly briefing covering local and other local news. Curated by our editorial team. No spam.
By subscribing you agree to our privacy policy . Unsubscribe anytime.
Frequently asked about this story
What is this story about? The agreement ends weeks of lobbying by outside interests and negotiations among Democrats in the California Legislature and Gov. Gavin Newsom about how to handle a surge of income tax collected on stock market gains related to artificial intelligence.
When was this published? This article was first published on June 27, 2026 by Los Angeles Times - California and curated for The Los Angeles readers.
Who reported this story? This story was reported by Taryn Luna at Los Angeles Times - California. To learn more about how The Los Angeles selects and reviews stories, see our editorial standards .
Where can I find related coverage? See more local coverage from The Los Angeles, or browse our daily briefing and topic hubs .
← Back to all news
More local →
Today’s briefing
Subscribe to newsletter