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

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.