California Gov. Newsom unveils historic $97.5 billion budget surplus

SACRAMENTO, Calif. — California is entering the following finances year with a record-smashing surplus of practically $100 billion, Gov. Gavin Newsom said Friday.

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

That means Newsom, a Democrat, has tens of billions of dollars extra to spend on new and current initiatives as he seeks re-election within the fall. He plans extra spending to deal with the continued drought, to assist more ladies get abortions in California and to offset rising prices of food, gasoline and other goods resulting from inflation.

He’ll have to achieve agreement with the Democratic-led legislature on all of his proposals. They've till the end of June to finalize the funds, which takes impact July 1.

Newsom said one of his high price range priorities is offering Californians aid from inflation.

“People are feeling deep stress, deep anxiousness,” he stated.

He’s proposed giving $400 checks to registered automotive house owners within the state, with up to two checks per individual. That will value the state about $11.5 billion, he stated. Though the cash would only go to automobile house owners, Newsom mentioned it should be thought of “inflation refund and relief.”

“For you, it could possibly be a rebate to handle the issue of groceries, it could possibly be a rebate to address the opposite value burdens which are placed on you,” he said.

Democratic lawmakers, though, have a special concept on how one can provide relief. They want to give $200 checks only to these under a sure income degree.

Republicans, meanwhile, say moderately than a examine Newsom should droop the state’s highest-in-the nation gasoline tax for one yr. They’ve also asked him to increase a tax credit score for renters and provide new tax credits to college students.

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