California Gov. Newsom unveils historic $97.5 billion budget surplus

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

Newsom unveiled a revised funds plan of just over $300 billion for the subsequent fiscal 12 months, the very best in state historical past and fueled by surging tax revenues. The state has collected $55 billion extra 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 additional spending to deal with the ongoing drought, to help extra ladies get abortions in California and to offset rising prices of food, fuel and different items as a consequence of inflation.

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

Newsom said one of his prime price range priorities is providing Californians reduction from inflation.

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

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

“For you, it might be a rebate to deal with the problem of groceries, it could possibly be a rebate to handle the opposite cost burdens which might be placed on you,” he said.

Democratic lawmakers, although, have a unique idea on the best way to provide relief. They wish to give $200 checks solely to those beneath a certain earnings degree.

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

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