For the past few years, Gov. Gavin Newsom had the luxury of calling his revised state budgets “unprecedented” and “historic.” On Friday, he struck a much different tone, repeatedly emphasizing the value of prudence and restraint as he unveiled a revised, $306.5 billion state budget proposal.  

The budget includes a few wins for cities, but on the homelessness and housing front, a few disappointments as well. The shift in tone is not surprising. The state started with a budget deficit for fiscal year 2023-24, which grew to $31.5 billion since January.