California Gov. Newsom unveils historic $97.5 billion budget surplus

SACRAMENTO, Calif. — California is entering the next funds yr with a record-smashing surplus of practically $100 billion, Gov. Gavin Newsom said Friday.

Newsom unveiled a revised funds 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 extra 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 more to spend on new and present initiatives as he seeks re-election within the fall. He plans additional spending to deal with the continued drought, to assist more women get abortions in California and to offset rising prices of food, gasoline and other goods on account of inflation.

He’ll have to succeed in settlement with the Democratic-led legislature on all of his proposals. They've until the top of June to finalize the funds, which takes impact July 1.

Newsom stated one in all his high budget priorities is providing Californians relief from inflation.

“Persons are feeling deep stress, deep anxiety,” he mentioned.

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

“For you, it might be a rebate to address the difficulty of groceries, it could possibly be a rebate to address the opposite price burdens which are placed on you,” he mentioned.

Democratic lawmakers, though, have a different idea on tips on how to present aid. They want to give $200 checks solely to these below a certain income stage.

Republicans, in the meantime, say slightly than a examine Newsom ought to droop the state’s highest-in-the nation fuel tax for one year. They’ve also asked him to extend a tax credit for renters and provide new tax credit to students.

“Senate Republicans believe there is a higher solution to spend money on the state,” said Sen. Rosilicie Ochoa Bogh of Yucaipa.