January brings the California State Legislature back to work, and with it a clearer picture of California’s fiscal outlook. Following the State of the State address from the governor and the release of his 2026-27 budget proposal, attention is turning to the state’s underlying budget conditions and long-term obligations.
According to the nonpartisan California Legislative Analyst’s Office, the state faces a projected $18 billion budget shortfall, marking the fourth consecutive year of deficits.
Households across the state regularly make difficult decisions to balance their budgets, and the state government faces similar constraints.
Budget analysts have cautioned that while emerging sectors such as artificial intelligence may contribute to revenue growth, those gains can be volatile and should be weighed against rising program costs and slower overall revenue growth.
Projections indicate that structural imbalances could widen in the coming years, potentially reaching $35 billion annually by 2027–28, particularly as affordability challenges contribute to population changes.
As the legislative session moves forward, I’m focused on fiscal discipline, responsible stewardship of taxpayer dollars, and long-term planning to ensure California’s finances are sustainable for future generations.
Legislative Update: I’m excited to share that I’ve introduced my first bill for 2026 to rein in state regulators. Senate Bill 885 is designed to restore accountability, transparency, and oversight to California’s regulatory process by returning final authority over major regulations to the California State Legislature. As an elected official, I answer directly to my voters, but that’s not the case for political appointees. My legislation puts accountability back where it belongs: with the legislators who are elected by, and answer to, the people of California.
I presented SB 885 across the desk.
State of the State Reaction: Following the State of the State Address, media outlets asked me to weigh in and provide my analysis. First and foremost, public safety must be the top priority. I remain committed to advocating for fully funding Proposition 36 to restore the rule of law and make crime illegal again in California. Sacramento must stop wasting money. Families are struggling with soaring electricity costs, the rising cost of living, and high gas prices. Start by scrapping costly projects, like the high-speed rail. Click HERE to read my thoughts published in a CalMatters article, and click HERE to read my remarks published in the Los Angeles Times.
Speaking to Los Angeles Times, KFF Health News, and CBS 13 Sacramento reporters
post-State of the State reaction.
2026-27 Budget Proposal: The Newsom Administration released its 2026-27 budget proposal, and with multi-year deficits, I’m deeply concerned that we are kicking the can down the road. Click HERE to read the ABC 7 Los Angeles article and click HERE for the story with Associated Press reporter Tran Nguyen.
At the 2026 State of the State, I connected with both Republican and Democratic colleagues in Sacramento.
A survey from the nonpartisan Public Policy Institute of California shows voters are tired of the status quo. It’s a new year, and the state has real challenges to tackle, so the Legislature must be serious about delivering real results. Click HERE to read more about the results.
Californians are done with the status quo.
Sacramento Meeting Highlights:
The Legislature convened on January 5, and I hit the ground running. Some highlights included meeting with officials from the Cities of Artesia and Cerritos City Council, who visited my Sacramento office to discuss their legislative priorities.
Top photo: Members of the Artesia City Council
Bottom photo: Members of the Cerritos City Council
I recently met with members of the Orange County Business Council to talk pro-business policies and economic development strategies that keep Orange County thriving as a global economic hub. I’m honored to have been named OCBC’s 2025 Legislator of the Year.
With members of OCBC.
As Vice Chair of the Senate Transportation Committee, I strongly opposed Senate Bill 220 and shared my remarks during a committee hearing. This measure takes away local control, and I believe it is important to hear from constituents of Los Angeles rather than rushing to pass it. At the end of the day, expanding representation is a worthy goal, but state intrusion into local transit governance risks doing more harm than good.
Click HERE to listen to my full remarks on SB 220.
Highlights in Senate District 36:
I had an amazing time at the ceremony to celebrate Patriot Point in Huntington Beach. This permanent memorial, inspired by the patriotism of Vietnam War veteran and Purple Heart recipient Zachary Martinez, stands as a place of reflection for veterans and a reminder that as America approaches its 250th anniversary, our freedom was earned through sacrifice and must always be remembered.
I was honored to attend the ribbon-cutting of Patriot Point in Huntington Beach.
I’m grateful for the collaboration with the Newport Beach City Council and joined Mayor Lauren Kleiman on a tour as crews worked around the clock to safely and permanently seal a 1920s-era abandoned oil well, protecting nearby residents. This project is funded through the State’s Orphan Well Program and is an excellent example showing the collaboration between state and local governments.
The City of Newport Beach led the day-to-day operations, implemented safety measures, coordinated street closures, and maintained clear communication with residents. I sincerely thank the dedicated crews who worked long hours to ensure the well was sealed safely. Thanks to their efforts, the neighborhood is now safer, and residents can enjoy peace of mind knowing this long-standing hazard has been permanently addressed.
At the site of the Newport Beach Abandoned Oil Well in December 2025.
Team Strickland was proud to join the ribbon-cutting for Tram Cream Coffee at Station 9 in Westminster, supporting a small business that is creating jobs, investing locally, and adding to the vibrant Vietnamese coffee culture that makes Senate District 36 so special.
Celebrating the grand opening of Tram Cream Coffee in Westminster.
I’m thrilled that Parlor Donghnuts has opened its 100th store in Huntington Beach. Team Strickland joined in on the festivities to support this incredible milestone.
Celebrating the grand opening of Parlor Doughnuts’ 100th store in Huntington Beach.
Lastly, I am grateful to Artesia Mayor Rene Trevino for adjourning in memory of Rep. Doug LaMalfa at the first city council meeting in January. Congressman LaMalfa and I were close, personal friends. When we both served in the California State Legislature, we were roommates before he was elected to serve in Congress. I will always cherish his friendship and his commitment to public service.
I look forward to working hard to return California to its Golden Age!
In Friendship,
Tony