Governor Gavin Newsom has announced a new budget proposal totaling $322 billion for California, marking a significant turnaround with a projected budget surplus. This plan includes full funding for Pre-K education and resources aimed at clearing homeless encampments. Newsom emphasizes a balanced approach, tapping into $7 billion in reserves while aiming to raise film tax credits to $750 million. Critics, including local Republican leaders, have expressed concerns over future financial issues despite the current surplus. The budget proposal also includes significant funding for courts, disaster relief, and a focus on stable education funding. With a bold economic vision, Newsom’s plan has drawn varied responses, highlighting the ongoing economic recovery and structural challenges facing the state.