California Gov. Newsom unveils historic $97.5 billion price range surplus

SACRAMENTO, Calif. — California is coming into the subsequent budget yr with a record-smashing surplus of practically $100 billion, Gov. Gavin Newsom said Friday.

Newsom unveiled a revised finances plan of just over $300 billion for the subsequent fiscal yr, the highest in state historical past and fueled by surging tax revenues. The state has collected $55 billion extra in taxes than officials anticipated 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 in the fall. He plans further spending to tackle the continuing drought, to help extra women get abortions in California and to offset rising prices of food, gas and different items because of inflation.

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

Newsom stated one in every of his high budget priorities is providing Californians aid from inflation.

“Persons are feeling deep stress, deep nervousness,” he stated.

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

“For you, it may very well be a rebate to deal with the issue of groceries, it may very well be a rebate to address the other cost burdens that are placed on you,” he said.

Democratic lawmakers, though, have a distinct idea on find out how to present aid. They need to give $200 checks solely to these under a certain earnings degree.

Republicans, meanwhile, say reasonably than a examine Newsom should droop the state’s highest-in-the nation fuel tax for one 12 months. They’ve also asked him to increase a tax credit score for renters and supply new tax credit to college students.

“Senate Republicans believe there is a higher technique to invest in the state,” mentioned Sen. Rosilicie Ochoa Bogh of Yucaipa.