It's Budget Day in California. 11 a.m. release. It turned out to be a smart decision by @GavinNewsom and his team to roll out major pieces in advance given how Wednesday's riot continues to dominate the news. 1/

The main contours are known. We've thought since September that California was heading toward a surplus. Newsom has already announced ~$9B in spending related to Covid response. Billions more will go toward K-14 and reserves. Expect more on wildfires & climate change. 2/

Talking to POLITICO colleagues in other states, you realize how rare it is to have such a large windfall as others are in deficit mode. Give California leaders credit for lessons learned from the Great Recession, but also the high-flying tech economy, among other reasons. 3/

Consider, for instance, that New York is banking on federal stimulus aid to bridge its $15B deficit, as @katymurphy and @MackenzieMays write. Even Florida has a deficit despite criticizing California's budget woes last year. 4/ https://www.politico.com/states/california/story/2021/01/07/georgia-sweep-renews-blue-state-hopes-for-federal-cash-1353135

The budget isn't just a governor's opportunity to balance the books, but a chance lay out vision and policy priorities for the year. It's clear so far that 2021 will still be dominated by Covid - combatting infections and recovering from its societal harms. /end