Newsom and lawmakers, as part of budget negotiations last year, reached a handshake agreement to make cuts, defer programs and take $7.1 billion out of the state’s rainy day fund, to address a projected shortfall in 2025-26. The early agreement is just that — it won't actually be part of the budget until lawmakers approve it in June.

Newsom called for $420 million more for tax credits to lure the film industry back to California, highlighting $20 million to lure a show called Bad Monkey back from Florida. Newsom said it’s a good show, and for $20 million of taxpayer funds I should hope so.

California Gov. Gavin Newsom (D) on Monday proposed a $322 billion budget that he said would be “balanced” and without deficits — marking a significant turnaround after two years of shortfalls. Newsom delivered a “top-line” version of the 2025-2026 budget proposal at a Monday press conference,