California Gov. Newsom unveils historic $97.5 billion finances surplus

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

Newsom unveiled a revised funds plan of simply over $300 billion for the next fiscal year, the very best in state historical past and fueled by surging tax revenues. The state has collected $55 billion more in taxes than officers anticipated in January, leaving it with an estimated $97.5 billion surplus.

Which means Newsom, a Democrat, has tens of billions of dollars extra to spend on new and current initiatives as he seeks re-election within the fall. He plans extra spending to deal with the ongoing drought, to help more women get abortions in California and to offset rising costs of meals, gas and other goods as a result of inflation.

He’ll have to reach settlement with the Democratic-led legislature on all of his proposals. They have till the tip of June to finalize the finances, which takes impact July 1.

Newsom mentioned certainly one of his high budget priorities is providing Californians aid from inflation.

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

He’s proposed giving $400 checks to registered car homeowners in the state, with as much as two checks per particular person. That will price the state about $11.5 billion, he stated. Though the cash would solely go to automotive house owners, Newsom stated it should be thought-about “inflation refund and reduction.”

“For you, it might be a rebate to deal with the problem of groceries, it might be a rebate to deal with the other cost burdens which can be placed on you,” he stated.

Democratic lawmakers, although, have a distinct concept on how to present relief. They wish to give $200 checks only to those under a sure income degree.

Republicans, meanwhile, say reasonably than a check Newsom ought to suspend the state’s highest-in-the nation gas 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 imagine there's a higher technique to invest in the state,” stated Sen. Rosilicie Ochoa Bogh of Yucaipa.