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.

California Governor Gavin Newsom has proposed a $322 Billion state budget for the next fiscal year. Newsom says the budget, which comes after two years of massive state deficits, will be balanced and without a deficit.

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.