California Gov. Newsom unveils historic $97.5 billion funds surplus

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

Newsom unveiled a revised price range plan of simply over $300 billion for the following fiscal yr, the highest 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.

Meaning Newsom, a Democrat, has tens of billions of dollars extra to spend on new and existing initiatives as he seeks re-election within the fall. He plans extra spending to tackle the continuing drought, to assist more girls get abortions in California and to offset rising prices of meals, fuel and other items because of inflation.

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

Newsom mentioned one among his high finances priorities is offering Californians aid from inflation.

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

He’s proposed giving $400 checks to registered automotive house owners in the state, with up to two checks per person. That might price the state about $11.5 billion, he mentioned. Though the cash would solely go to car homeowners, Newsom said it ought to be thought-about “inflation refund and aid.”

“For you, it might be a rebate to handle the problem of groceries, it might be a rebate to handle the opposite value burdens which are positioned on you,” he said.

Democratic lawmakers, although, have a distinct thought on methods to provide aid. They need to give $200 checks only to those below a certain income stage.

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

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