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California Gov. Gavin Newsom released a state budget proposal Thursday that seemingly does it all — boosts spending toward his ambitious campaign promises and sets aside significant contributions toward debts and savings. It appears he can have his cake and eat it too because he's projecting a massive $21.5 billion surplus — far beyond anything the state has seen in nearly 20 years — as California collects more in taxes than predicted and growth slows for Medi-Cal, which provides health care for low-income people. (Cooper, 1/10)

The budget also calls for an overall increase in health and human services spending of 8 percent over the current fiscal year, and $1 billion to double the state's earned income tax credit for low-income families. Subsidized premiums would be increased under Covered California, the state's version of Obamacare, while expanding Medi-Cal, the state's medical plan for the poor. The proposed Medi-Cal expansion would extend coverage to roughly 138,000 young adult immigrants, from age 19 through 25, who are in the country illegally. (1/10)

The progressive blueprint embraces a state health insurance mandate, beefed-up insurance subsidies, coverage for undocumented immigrants and six months of paid parental leave — not unexpected from a Democrat who campaigned on expanding health care and criticized President Donald Trump and congressional Republicans for eroding the Affordable Care Act. The new governor declared his $209 billion state budget proposal, of which health care accounts for nearly 30 percent, “a reflection of our values.” (Young and Ibarra, 1/11)

For 50 years, California has required cities and counties to plan for enough new housing so that residents can live affordably. But many local governments fail to approve new development, contributing to the state’s housing crunch. Now, Gov. Gavin Newsom is proposing a radical new step: punishing communities that block homebuilding by withholding state tax dollars. (Dillon, 1/10)

In a nod to the recent wildfires that have decimated California communities, Newsom also is proposing hundreds of millions in new spending on emergency response and preparedness, including new technology for Cal Fire and $60 million to start upgrading the state's antiquated 911 system. (Lagos, Marzorati and Dembosky, 1/10)

The total proposal — including money earmarked for special purpose funds — tops $209 billion. That’s about $8 billion more than Brown’s final budget. (Bollag and Koseff, 1/10)

New York Gov. Andrew Cuomo said he would unveil his proposal for a new state budget on Tuesday, weeks before the deadline. ... The total budget is projected to exceed $170 billion, with operating costs around $102 billion, according to the most recent state financial plan, which was released in November. The state budget will include updated allocations for school aid, Medicaid and infrastructure spending. (Vielkind, 1/10)

Despite a new lineup of legislators – as well as a new governor and lieutenant governor — many health care issues in the upcoming session of the Georgia General Assembly will have a familiar look. They are largely the same ones that have percolated under the Gold Dome in past years. Health care regulations. Surprise medical billing. Rural health care. Medical marijuana. (Miller, 1/10)

Gov. Ralph Northam’s proposal to raise state health insurance credits for law enforcement would add $76 million in unfunded liabilities to two plans that already are funded at less than 10 percent of their long-term obligations, according to the Virginia Retirement System. The governor’s budget proposal already has drawn fire from House Appropriations Chairman Chris Jones, R-Suffolk, who called the increases for state police, sheriffs and their deputies, and other state law officers “fiscally irresponsible” and unfair to other public employees who receive the credits after retirement to help pay for health insurance. (Martz, 1/10)

Kaiser Health News: Podcast: KHN’s ‘What The Health?’ New Year, New Health Proposals
The new Democratic majority in the House of Representatives took its first steps on health care — voting to intervene in the appeal of a Texas-led lawsuit that found the Affordable Care Act unconstitutional in December. And around the country, Democratic governors and mayors unveiled new initiatives aimed at making health care cheaper and more accessible. (1/10)