Gov. Gavin Newsom’s proposal included a $228.9 billion general fund that would rely on $17 billion in reserves

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.

Newsom’s outcomes on both homelessness and gas prices point back to his ineffectiveness as a leader and his inability to solve problems.

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.

Governor Newsom painted a bright picture of California's economy, fueled by big stock market gains by the state's wealthiest residents, and previous spending cuts. But he warned that the budget could change,