California is entering the next budget year with a record-smashing surplus of nearly $100 billion, Gov. Gavin Newsom said Friday.Newsom unveiled a revised budget plan of just over $300 billion for the next fiscal year, the highest in state history and fueled by surging tax revenues. The state has collected $55 billion more in taxes than officials expected in January, leaving it with an estimated $97.5 billion surplus.California is home to about 39 million people and has an economy that’s larger than all but four nations. The surplus alone is much bigger than nearly every other state's annual budget.| RELATED | See Gov. Newsom's May revised budget plan hereThat extra money means Newsom, a Democrat, has tens of billions of dollars more to spend on new and existing initiatives as he seeks re-election in the fall. Newsom said one of his top priorities is providing Californians relief from spiraling inflation.At a news conference to announce the new budget figures, he also touted California as a safe haven for women seeking abortions. He wants to spend more money to help women in and out of the state get abortions amid uncertainty about the future of the Roe v Wade decision that legalized the procedure but could get overturned next month at the U.S. Supreme Court. | VIDEO BELOW | Gov. Newsom wants to update business incentives to target companies in states with anti-abortion lawsNewsom also wants to give health care workers a bonus. He proposed that the State give a stipend directly to hospital and skilled nursing facility workers and doctors, who have been on the frontlines of the COVID-19 pandemic and keeping people safe. The State would give a $1,000 bonus to health care workers – and if an employer provided those workers a bonus themselves, the State would match up to $500 of that. That means the State could pay up to $1,500 total to hospital and nursing home employees. Some have criticized Gov. Newsom, saying his proposal does not provide money to other frontline workers during the pandemic, such as grocery store employees. But he said changes are not off the table."The challenge with any budget is we have to do a lot of things, and a lot of folks want you to do even more,” Gov. Newsom said. “That's the nature of proposals and budgets. What's wonderful about a budget, and I've done many of these, is the engagement with the legislature, and I look forward to engaging them and addressing their perspectives. I think what matters is where we end up."Gov. Newsom also said the stipend is an important part in addressing retention issues within the health care field in California. He stressed the need to make sure hospitals and nursing homes have enough staff. Health care unions were thrilled to hear the governor address the issue of retention.SEIU United Healthcare Workers West President Dave Regan released the following statement:“As healthcare workers who have been on the front lines of the COVID-19 pandemic for the past two years, SEIU-UHW members appreciate Governor Newsom for listening to and supporting them throughout this crisis. For years, SEIU-UHW members have raised concerns about California’s healthcare staffing shortage. The staffing crisis has only worsened as workers have left the industry in droves during the pandemic because of increased health risks, emotional and mental stress, and overwork. The proposed inflation relief package, which includes pay for healthcare workers, marks an important step that would recognize their sacrifices on the frontlines of the pandemic and help retain skilled and experienced caregivers. With this investment in keeping skilled healthcare workers on the job, the Governor’s proposal moves us one step closer to a future where every Californian has access to care provided by valued and respected caregivers. We urge legislators to swiftly adopt the Governor's proposal and pass it into their budget bill.”Newsom also proposed more spending on the drought and the state’s ongoing housing and homelessness crisis.Most everything he talked about either was in the January budget plan or made public before Friday's announcement. Newsom now must reach an agreement with the Democratic-led Legislature. They have until the end of June to finalize the budget, which takes effect July 1.California's gas prices are among the highest in the nation, with the average price of a gallon now sitting at $5.87 cents in the state, according to AAA. The cost of food, cars and nearly every other consumer good has increased.| RELATED | Interactive: County-by-county look at gas prices in the greater Sacramento region“People are feeling deep stress, deep anxiety,” Newsom said.He’s proposed giving $400 checks to registered car owners in the state, with up to two checks per person. That would cost the state about $11.5 billion, he said. Though the money would only go to car owners, Newsom said it should be considered “inflation refund and relief."“For you, it could be a rebate to address the issue of groceries, it could be a rebate to address the other cost burdens that are placed on you," he said.Democratic leaders have a different idea on how to provide relief. They want to give $200 checks only to those below a certain income level.Republicans, meanwhile, say rather than a check Newsom should suspend the state's highest-in-the nation gas tax for one year. They've also asked him to increase a tax credit for renters and offer new tax credits to students.“Senate Republicans believe there is a better way to invest in the state,” said Sen. Rosilicie Ochoa Bogh of Yucaipa.Newsom has made tackling California's homelessness and housing crisis a top priority but both challenges continue unabated. That's prompted Newsom to propose even more money to create more housing, including $500 million to turn shopping malls and office buildings into housing. A bill to do that died in the Legislature last year.He's also proposed building tiny homes as temporary shelter solutions for homeless people and expanding a pandemic-era program to house people in hotel and motel rooms.The state's schools will get $2.1 billion more to spend how they want, a proposal likely to be welcomed by districts still recovering from pandemic closures.Newsom's budget presentation comes as the state is in the throes of a deepening drought and as state energy officials warn of possible power shortages during the summer when air conditioning is at its peak.| VIDEO BELOW | Gov. Newsom describes cannabis budget proposalThe governor has called for people to cut their water use by 15%, but consumption went up dramatically in March. Newsom wants to spend more money to encourage conservation in cities and on farms, provide loans to struggling drinking water systems and boost water recycling. It includes $75 million for grants to farms and businesses hurt by the drought.Meanwhile, he's calling for $5 billion to create a 5,000-megawatt “strategic reserve" of energy to help the state avoid blackouts. One megawatt can power 750 to 1,000 homes. Newsom's budget document included limited details on how that reserve would be built, but he has indicated he's open to the possibility of keeping the Diablo Canyon nuclear facility online past its planned closure in 2025 as well as some gas-fired power plants that are set to retire. Gov. Newsom also wants to spend millions of more dollars to address the immediate and long-term problems facing the Employment Development Department, or EDD. He announced today the proposal of funds to fight fraud and identity theft at EDD. KCRA 3 shows just how widespread the fraud was in California in two documentaries – one on the pandemic fraud, and another that aired Wednesday, showing how the disability claims were affected as well. Gov. Newsom said the money – just over $44 million, spread over three years – will help to take on some of that problem."I'm really pleased with their progress, so this budget reflects their asks in terms of next steps and to the extent that we feel there are still gaps of the legislature does look forward to closing those gaps before we close this budget,” Gov. Newsom said.While the governor touted the funds to combat fraud, that money will get split up between the following: identity theft awareness campaigns, funding for district attorney’s offices to continue prosecutions, and fraud detection programs in the State’s disability department. | MORE LIKE THIS | Why CA's minimum wage is expected to increase next yearKCRA 3's Orko Manna contributed to this report.