The Governor’s various proposed actions to obtain savings in the current and budget years through actions in the special session have significant implications for the state’s health services programs. In this report, we (1) discuss some of the key overriding issues relating to the Governor’s plan, (2) summarize the Governor’s health budget proposals, and (3) provide our initial comments on a number of the major proposals in each specific program area. We note that we are still receiving information about these proposals from the administration that may prompt us to modify our recommendations. (Revised: 1/24/2010)