Gov. Gavin Newsom was at Stanislaus State on Monday to provide glimpses of a $322 billion state budget without a deficit, following two years of shortfalls.

Nevertheless, the spending plan was panned by local Republican leaders — including Turlock Mayor Amy Bublak — who held their own press conference in the parking lot of Garton Tractor Inc. on North Golden State Boulevard.

Newsom provided few concrete budget details — it will officially be unveiled Friday — but boasted of progress where the state has faced criticism, including investment on education, infrastructure, and efforts to solve the homelessness crisis.

Bublak, who said she was not invited to attend the event at her alma mater, was joined at the Garton Tractor press conference by Ceres Mayor Javier Lopez, Stanislaus County GOP chairman Joel Campos, and California Republican Party vice-chairwoman Corrin Rankin.

Turlock’s mayor said cities are working hard to increase reserves during tough times.

“It should be the same with the state," Bublak said. "I want to see them making a big commitment to increasing reserves and not just call it a rainy-day fund.”

Bublak was referring to Newsom’s response to a question about the Legislative Analyst’s Office predicting deficits in the coming years.

Newsom told the Stan State audience that he supports efforts to grow the state’s rainy-day fund, but said it would be a “herculean effort.”

Newsom received a copy of Northern San Joaquin Valley’s regional economic plan from Merced County Director of Workforce Investment Erick Serrato.  Created in joint collaboration with universities, local leaders and industry partners, the plan highlights strategies for job growth, training, and economic resilience. 

“We want to emphasize today that the state’s vision, as it relates to economic and workforce development, is realized locally,” Newsom said. “California is the future of the American economy. We’ve got to make sure people see themselves in the economy. … That’s precisely why this effort is so impactful and so meaningful.”

Newsom also pointed out Stanislaus State’s role in the Central Valley, referencing its Wall Street Journal ranking as the No. 2 university in the nation for social mobility (UC Merced is No. 1), and a No. 9 ranking among the best public universities.

“Gov. Newsom, we want to thank you for your commitment to workforce development and economic equity,” Stanislaus State President Britt Rios-Ellis said. “We share the belief that public higher education is one of the most impactful investments we can make in California’s future.” 

The budget showcased Monday is essentially a provisional one, as Newsom waits to see if President-elect Donald Trump follows through on threats to withhold billions in federal funding from the nation’s most populous state — and the world’s fifth-largest economy. If that happens, California legislators could be forced to make cuts to essential programs. About one-third of California’s budget relies on funding from Washington. Trump takes office on Jan. 20, and Newsom must sign the final budget by the end of June.

State lawmakers already opened a special session to consider giving $25 million to Attorney General Rob Bonta’s office for potential legal challenges from the Trump administration. 

Finding a way to balance the budget in the face of potential federal funding losses will be a major test for Newsom, who is entering the lame duck phase of his tenure, and is seen by many as a potential Democratic presidential nominee in 2028.

One project that could be at risk is the state’s high-speed rail project. Trump withdrew nearly $1 billion in federal funding during his first term. President Joe Biden later restored those funds.

Newsom said a tax increase will not be necessary to balance the budget, but hinted that Trump’s economic policies could adversely affect the Golden State.

“There’d be no need,” said Newsom about tax increases. “Now, the bottom could completely fall out. Trump could impose 60 percent tariffs against China; he could could support across-the-board 20 percent tariffs; he could move to deport millions and millions of undocumented people living in America … that could impact the labor market; it could impact interest rates that could potentially go up; inflation that could go up. He could also incorporate $2 trillion, as he professes, in cuts to social services. It would have to come from social services to achieve a $2 trillion savings. And that would radically change our outlook.”

— The Associated Press contributed to this story.