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Democratic California Gov. Gavin Newsom on Monday proposed a balanced budget for the 2025-2026 fiscal year, which would not include any deficits for the first time in two years.

Newsom is expected to officially deliver the budget proposal to the state legislature on Friday, but teased several items in a news conference on Monday. The balanced budget comes after the state witnessed a $46.8 billion deficit in 2024. 

The governor admitted that the budget could be changed throughout the year because of potential policies from President-elect Donald Trump’s administration. This includes Trump’s plan to reduce federal spending by $2 trillion, which Newsom claimed presented “a level of uncertainty,” according to The Hill.

“This budget reflects a foundational focus,” Newsom said in the news conference. “While it’s aspirational in many respects, it’s also just driving accountability. It’s about more transparency, it’s about reform and it’s about being prepared for uncertainties into the future.”

The budget includes a $228.9 billion general fund, and would rely on nearly $17 billion in reserves. When asked if the budget would raise taxes, the governor promised to “fight hard” against it.

“We endeavored to make this year’s budget a nonevent,” Newsom said. “Last year, we endeavored to solve the problems this year and did something we haven’t done in the past.”

The governor also boldly stated that California is “the future” and the “future of the American economy” despite backlash over high crime rates, and high costs of living. 

“We are America, but in the future tense, the future happens here first,” Newsom said. “We are America’s coming attraction. California is the future, and we certainly are the future of the American economy, because we’re the tentpole of the American economy.”

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.