California Gov. Newsom unveils historic $97.5 billion finances surplus

SACRAMENTO, Calif. — California is coming into the following budget 12 months with a record-smashing surplus of nearly $100 billion, Gov. Gavin Newsom mentioned Friday.

Newsom unveiled a revised budget plan of simply over $300 billion for the subsequent 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 officials 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 present initiatives as he seeks re-election in the fall. He plans extra spending to deal with the ongoing drought, to help more ladies get abortions in California and to offset rising costs of meals, gas and different goods attributable to 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 budget, which takes effect July 1.

Newsom mentioned one in every of his prime funds priorities is providing Californians relief from inflation.

“Individuals are feeling deep stress, deep nervousness,” he mentioned.

He’s proposed giving $400 checks to registered automotive house owners in the state, with up to two checks per particular person. That will value the state about $11.5 billion, he stated. Though the money would only go to automobile house owners, Newsom mentioned it must be thought-about “inflation refund and reduction.”

“For you, it could possibly be a rebate to address the problem of groceries, it could possibly be a rebate to address the opposite price burdens which can be placed on you,” he stated.

Democratic lawmakers, though, have a different thought on methods to provide aid. They want to give $200 checks solely to these below a sure revenue level.

Republicans, meanwhile, say rather than a check Newsom should droop the state’s highest-in-the nation gas tax for one year. They’ve additionally asked him to extend a tax credit score for renters and supply new tax credit to students.

“Senate Republicans believe there's a better strategy to spend money on the state,” stated Sen. Rosilicie Ochoa Bogh of Yucaipa.