California Gov. Newsom unveils historic $97.5 billion funds surplus

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

Newsom unveiled a revised budget plan of simply over $300 billion for the subsequent fiscal yr, the best in state history 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.

Meaning Newsom, a Democrat, has tens of billions of dollars extra to spend on new and present initiatives as he seeks re-election in the fall. He plans further spending to sort out the continued drought, to assist extra girls get abortions in California and to offset rising prices of food, fuel and other items resulting from inflation.

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

Newsom mentioned one of his prime budget priorities is offering Californians aid from inflation.

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

He’s proposed giving $400 checks to registered car owners within the state, with as much as two checks per person. That will cost the state about $11.5 billion, he stated. Although the money would solely go to car owners, Newsom said it should be thought-about “inflation refund and aid.”

“For you, it could possibly be a rebate to deal with the issue of groceries, it may very well be a rebate to address the other value burdens which can be positioned on you,” he stated.

Democratic lawmakers, though, have a unique idea on the right way to provide relief. They wish to give $200 checks solely to those below a certain income degree.

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

“Senate Republicans consider there is a higher approach to invest in the state,” stated Sen. Rosilicie Ochoa Bogh of Yucaipa.