City staff brief committee on signed 2026–27 California budget, highlighting $900 million for homelessness

Consuelo Hernandez, Sacramento's Director of Governmental Affairs, told the Law and Legislation Committee the governor signed the 2026–27 budget "a little over 300, almost 352 billion," and the package includes several items of local interest. Hernandez said the budget increases or maintains $28.8 billion in reserves, includes a temporary $6.4 billion holding account to help balance fiscal year 2027–28, and aims to reduce the structural deficit through fiscal 2029–30.

Hernandez emphasized homelessness funding as a key city priority: "Homelessness. This is probably the biggest one for us. Hap seven funding was included in the budget at $900 million." She said the city expects to receive direct allocations under the housing trailer bill AB 179 without submitting a new application and that jurisdictions receiving direct allocations must meet a pro-housing designation and a 35% match requirement, with some flexibility in what counts as match. Hernandez also outlined other housing-related allocations and said staff will return updates on outstanding items and ballot measures affecting city priorities.