California Gov. Newsom unveils historic $97.5 billion finances surplus

SACRAMENTO, Calif. — California is entering the following funds 12 months with a record-smashing surplus of nearly $100 billion, Gov. Gavin Newsom said Friday.

Newsom unveiled a revised budget plan of simply over $300 billion for the next 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.

That means 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 extra spending to tackle the ongoing drought, to help more ladies get abortions in California and to offset rising costs of meals, gasoline and different items resulting from inflation.

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

Newsom mentioned considered one of his top finances priorities is offering Californians relief from inflation.

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

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

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

Democratic lawmakers, although, have a distinct thought on how one can provide relief. They want to give $200 checks solely to those under a sure revenue level.

Republicans, in the meantime, say somewhat than a check Newsom should droop the state’s highest-in-the nation gas tax for one 12 months. They’ve additionally requested him to extend a tax credit score for renters and offer new tax credit to college students.

“Senate Republicans believe there's a higher solution to invest in the state,” stated Sen. Rosilicie Ochoa Bogh of Yucaipa.