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.

Gov. Newsom's 2026 budget aims to address California's deficit and prioritize education, housing, healthcare, and more. Learn about the proposed allocations.

TURLOCK — California will not have a budget deficit next year, Gov. Gavin Newsom announced on Monday based on projections from his finance team. The budget picture Newsom describes is a major turnaround from the $47 billion deficit last year and the $32 billion shortfall the year before.