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TURLOCK, Calif. (AP) — 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, which could force lawmakers to make painful cuts to essential programs. About a third of California’s budget relies on funding from the federal government, including tens of billions to provide health care services. Trump takes office Jan. 20, and Newsom must sign the final budget by the end of June.

California lawmakers already opened a special session to consider giving a fresh $25 million to Attorney General Rob Bonta's office to defend against or take on potential legal challenges from the Trump administration. Fights are likely between California and Washington, D.C., over climate policy and immigrant rights. State senators have also proposed additional funding to provide free legal services to immigrant communities.

Newsom's administration plans to provide more details on the budget proposal on Friday, the deadline to present it to lawmakers. Newsom announced the numbers early before heading out of state for former President Jimmy Carter's funeral services.

Newsom said he's proposing little new spending, but the budget does allow the state to fully implement the country’s first universal transitional kindergarten program, which will make such school free for some 400,000 4-year-olds in California. That's an effort Newsom has championed since 2021. His plan also includes doubling the state’s film and TV tax credit to $750 million annually to bring back Hollywood...