California Gov. Newsom unveils historic $97.5 billion finances surplus

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

Newsom unveiled a revised funds plan of just over $300 billion for the following fiscal 12 months, the highest in state historical past 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.

Which means 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 further spending to tackle the ongoing drought, to assist more women get abortions in California and to offset rising prices of food, gas and other items as a result of 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 effect July 1.

Newsom said one among his top finances priorities is offering Californians relief from inflation.

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

He’s proposed giving $400 checks to registered car owners in the state, with up to two checks per person. That may cost the state about $11.5 billion, he mentioned. Although the cash would only go to automobile homeowners, Newsom said it ought to be thought-about “inflation refund and aid.”

“For you, it could possibly be a rebate to address the problem of groceries, it might be a rebate to deal with the opposite price burdens that are positioned on you,” he said.

Democratic lawmakers, although, have a special thought on easy methods to provide reduction. They want to give $200 checks solely to these beneath a sure earnings level.

Republicans, meanwhile, say reasonably than a verify Newsom should droop the state’s highest-in-the nation fuel tax for one yr. They’ve additionally requested him to increase a tax credit for renters and provide new tax credit to college students.

“Senate Republicans consider there is a higher technique to put money into the state,” stated Sen. Rosilicie Ochoa Bogh of Yucaipa.