California Gov. Newsom unveils historic $97.5 billion funds surplus

SACRAMENTO, Calif. — California is entering the following finances year with a record-smashing surplus of nearly $100 billion, Gov. Gavin Newsom mentioned Friday.

Newsom unveiled a revised funds plan of just 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 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 within the fall. He plans additional spending to tackle the ongoing drought, to assist extra women get abortions in California and to offset rising prices of food, gasoline and other items as a result of inflation.

He’ll have to reach agreement with the Democratic-led legislature on all of his proposals. They've until the end of June to finalize the budget, which takes impact July 1.

Newsom said one in every of his high budget priorities is offering Californians relief from inflation.

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

He’s proposed giving $400 checks to registered automotive house owners within the state, with up to two checks per individual. That would cost the state about $11.5 billion, he mentioned. Though the money would only go to automobile homeowners, Newsom said it should be considered “inflation refund and relief.”

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

Democratic lawmakers, though, have a different concept on provide relief. They need to give $200 checks solely to those beneath a certain earnings stage.

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

“Senate Republicans consider there's a better way to invest in the state,” stated Sen. Rosilicie Ochoa Bogh of Yucaipa.