by a stunning $75.7 billion surplus and additional federal dollars — California Gov. Gavin Newsom will present the rest of his revised budget in Sacramento Friday.

The $267.8 billion spending plan is an updated version of Newsom’s January budget, which proposed $227 billion in spending. The revised budget incorporates the surplus and $27 billion in federal pandemic relief approved in March.

The governor said his proposed budget will “set this state up for not just a comeback, but a remarkable decade and arguably century ahead” as it recovers from the COVID-19 pandemic.

Newsom is facing a likely recall election later this year. It's his first spending proposal since the Secretary of State confirmed there are enough valid signatures to put a recall before voters.

It's a massive contrast to Newsom's budget presentation one year ago today, when the governor announced schools, homelessess and health care would see cuts as the state faced a $54 billion budget shortfall. But since then California has seen greater than expected tax revenues, especially from the state's highest earners, and additional federal funding that has left the state with a one-time surplus.

The budget is an outline of Newsom’s proposed spending priorities, but not a final product. Here's how the process works:

• The state Constitution requires the governor to submit a balanced budget proposal by Jan. 10, which Newsom did Jan. 8. It was then introduced as identical budget bills in the state Assembly and Senate.
• By May 14, the governor presents a revised budget proposal, which is what Newsom is doing Friday. This is sometimes called the "May Revise." The governor will spend the next several weeks negotiating with state lawmakers over a final spending plan.
• The Legislature must pass a budget by June 15. The governor is required to sign it by June 30.

A $100B “California Comeback” package

Part of Newsom’s budget will be a massive economic recovery package he has spent the past week promoting.

It includes:

• $12 billion to send $600 stimulus checks to Californians earning up to $75,000 a year who did not receive a check from the state’s first round of relief funds. Families and undocumented residents will receive $500 extra.
• Another $12 billion to tackle homelessness, including $8.75 billion to build affordable housing and buy up properties under the state’s project Homekey initiative and $1.5 billion in cleanup and beautification projects near highways.
• $20 billion to “reimagine public schools.” Proposals include $4 billion over five years to provide behavioral health treatment to all Californians under the age of 25, $2.7 billion to extend transitional kindergarten to every 4-year-old, and $2 billion to create $500 college savings accounts for millions of children.
• $5 billion in drought mitigation and water infrastructure repairs.
• $1.5 billion to add another round of small business grants up to $25,000, for a total of $4 billion in small business aid.

Some of the governor’s proposals have already been approved by the Legislature, including a first round of stimulus checks to low-income families, $6.2 billion in tax cuts for some small businesses and $6.6 billion in incentives for schools to bring students back to classrooms.