California Gov. Newsom unveils historic $97.5 billion budget surplus

SACRAMENTO, Calif. — California is getting into the next price range yr with a record-smashing surplus of practically $100 billion, Gov. Gavin Newsom stated Friday.

Newsom unveiled a revised funds plan of simply over $300 billion for the following fiscal yr, the very best in state historical past and fueled by surging tax revenues. The state has collected $55 billion extra in taxes than officers expected in January, leaving it with an estimated $97.5 billion surplus.

Meaning Newsom, a Democrat, has tens of billions of dollars more to spend on new and present initiatives as he seeks re-election within the fall. He plans extra spending to sort out the ongoing drought, to help more ladies get abortions in California and to offset rising costs of food, gas and other goods as a result of inflation.

He’ll have to reach agreement with the Democratic-led legislature on all of his proposals. They have till the end of June to finalize the finances, which takes effect July 1.

Newsom stated one of his top budget priorities is offering Californians reduction from inflation.

“Persons are feeling deep stress, deep anxiousness,” he mentioned.

He’s proposed giving $400 checks to registered car house owners in the state, with up to two checks per person. That would value the state about $11.5 billion, he mentioned. Though the cash would solely go to automotive house owners, Newsom said it needs to be thought of “inflation refund and aid.”

“For you, it could be a rebate to address the difficulty of groceries, it could possibly be a rebate to address the other price burdens which can be placed on you,” he mentioned.

Democratic lawmakers, although, have a distinct thought on the right way to present relief. They wish to give $200 checks only to these below a certain income level.

Republicans, meanwhile, say reasonably than a check Newsom ought to suspend the state’s highest-in-the nation gasoline tax for one 12 months. They’ve also requested him to increase a tax credit for renters and provide new tax credits to college students.

“Senate Republicans consider there is a better solution to spend money on the state,” said Sen. Rosilicie Ochoa Bogh of Yucaipa.