Newsom says budget is balanced, will still tap $7 billion in reserves

If you take Gov. Gavin Newsom at his word, California will have a budget surplus for the first time in several years, and his fellow Democrats who control the legislature won’t need to cut more programs as they try to make the state more livable.

In reality, the state’s financial future is murkier.

Newsom’s proposal for the 2025-2026 budget, unveiled Friday, has plans to pull $7.1 billion from the state’s rainy day reserve fund. That’s on the heels of a $5.1 billion draw from the fund that the governor agreed to last year...