California Gov. Newsom unveils historic $97.5 billion budget surplus

SACRAMENTO, Calif. — California is getting into the next price range year with a record-smashing surplus of practically $100 billion, Gov. Gavin Newsom mentioned Friday.

Newsom unveiled a revised funds plan of just 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 officers 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 existing initiatives as he seeks re-election in the fall. He plans further spending to deal with the continuing drought, to help extra ladies get abortions in California and to offset rising costs of food, fuel and other goods because of inflation.

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

Newsom said one of his top finances priorities is offering Californians reduction from inflation.

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

He’s proposed giving $400 checks to registered car owners in the state, with as much as two checks per individual. That will price the state about $11.5 billion, he stated. Though the money would solely go to car homeowners, Newsom mentioned it should be considered “inflation refund and aid.”

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

Democratic lawmakers, though, have a unique idea on tips on how to provide reduction. They wish to give $200 checks only to those beneath a certain earnings stage.

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

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