California Gov. Newsom unveils historic $97.5 billion funds surplus

SACRAMENTO, Calif. — California is entering the next price range yr with a record-smashing surplus of almost $100 billion, Gov. Gavin Newsom said Friday.

Newsom unveiled a revised budget plan of just over $300 billion for the next fiscal yr, the highest in state historical past and fueled by surging tax revenues. The state has collected $55 billion more in taxes than officers expected in January, leaving it with an estimated $97.5 billion surplus.

Which means Newsom, a Democrat, has tens of billions of dollars more to spend on new and current initiatives as he seeks re-election in the fall. He plans extra spending to sort out the ongoing drought, to help extra women get abortions in California and to offset rising prices of meals, gasoline and different items on account of inflation.

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

Newsom mentioned considered one of his top funds priorities is providing Californians aid from inflation.

“Individuals are feeling deep stress, deep anxiety,” he stated.

He’s proposed giving $400 checks to registered automotive house owners within the state, with up to two checks per individual. That would price the state about $11.5 billion, he mentioned. Though the money would solely go to automotive owners, Newsom mentioned it must be thought of “inflation refund and relief.”

“For you, it might be a rebate to address the issue of groceries, it may very well be a rebate to deal with the opposite cost burdens which are positioned on you,” he stated.

Democratic lawmakers, though, have a different concept on tips on how to provide aid. They need to give $200 checks only to those below a certain income level.

Republicans, in the meantime, say relatively than a test Newsom ought to droop the state’s highest-in-the nation gas tax for one 12 months. They’ve additionally requested him to extend a tax credit for renters and provide new tax credit to college students.

“Senate Republicans believe there's a better approach to invest in the state,” stated Sen. Rosilicie Ochoa Bogh of Yucaipa.