California Governor Gavin Newsom has announced his final budget proposal, boasting a balanced budget with no deficit for the current and upcoming fiscal years. This budget plan, bolstered by significant revenue from the ongoing AI boom, aims to maintain investments in education, healthcare, and support for working families while also addressing long-term liabilities projected for 2028. Despite the financial stability, concerns linger about potential future challenges, prompting Newsom to advocate for cautious spending, while also proposing a digital software tax and a new state savings account. Education leaders have expressed hopes for increased funding, although some programs may not receive additional support. The revised budget has garnered mixed reactions, with stakeholders urging the protection of promised school funding and arguing for greater fiscal prudence in light of the fluctuating economic landscape.