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,

California no longer faces a budget deficit, Gov. Gavin Newsom said Monday, two months after budget officials projected a $2 billion deficit that had left little room for additional government spending.