California Gov. Newsom unveils historic $97.5 billion budget surplus

SACRAMENTO, Calif. — California is entering the following finances yr with a record-smashing surplus of almost $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.

Which 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 ongoing drought, to help more girls get abortions in California and to offset rising costs of food, gas and different goods due to inflation.

He’ll have to achieve agreement with the Democratic-led legislature on all of his proposals. They have until the top of June to finalize the price range, which takes effect July 1.

Newsom stated considered one of his prime budget priorities is offering Californians relief from inflation.

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

He’s proposed giving $400 checks to registered car owners within the state, with up to two checks per particular person. That might price the state about $11.5 billion, he mentioned. Though the money would only go to automotive owners, Newsom said it ought to be considered “inflation refund and reduction.”

“For you, it may very well be a rebate to address the difficulty of groceries, it could possibly be a rebate to address the other price burdens which can be placed on you,” he mentioned.

Democratic lawmakers, although, have a special thought on how to provide aid. They wish to give $200 checks solely to those under a certain income level.

Republicans, in the meantime, say slightly than a examine Newsom ought to droop the state’s highest-in-the nation fuel tax for one yr. 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 technique to invest in the state,” stated Sen. Rosilicie Ochoa Bogh of Yucaipa.