California Gov. Gavin Newsom has proposed a $322 billion budget without a deficit, a welcome change after two years of significant budget shortfalls in the nation's most populous state.
But the budget Newsom announced Monday is mostly a placeholder as California waits to see if incoming President Donald Trump will follow through on threats to revoke billions in federal dollars, which could force lawmakers to make painful cuts to essential programs. About a third of California's budget relies on funding from the federal government, including tens of billions to provide health care services. Trump takes office Jan. 20, and Newsom must sign the final budget by the end of June.
