The plan, which avoids major cuts or significant new spending, is Newsom's last before he leaves office in January and as he considers a presidential run.
The city of Los Angeles has set a new record in liability payouts.
Senate Republicans voting in a dramatic late Saturday session narrowly cleared a key procedural step as they race to advance President Donald Trump's package of tax breaks, spending cuts and bolstered deportation funds by his July Fourth deadline.
Trying to lure productions back to Hollywood, California has voted to approve a major expansion to the state's film and TV tax credit program.
California state lawmakers are close to reaching a budget deal, but Governor Gavin Newsom has indicated he isn't satisfied. The state is facing a $12 billion deficit, which is about five percent of the $322 billion spending plan.
Gov. Gavin Newsom signed a budget that pares back a number of progressive priorities, including a landmark health care expansion for low-income adult immigrants without legal status.