California Gov. Newsom unveils historic $97.5 billion price range surplus

SACRAMENTO, Calif. — California is entering the subsequent budget 12 months with a record-smashing surplus of almost $100 billion, Gov. Gavin Newsom mentioned Friday.

Newsom unveiled a revised budget plan of simply over $300 billion for the following 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 officials expected in January, leaving it with an estimated $97.5 billion surplus.

Which means Newsom, a Democrat, has tens of billions of dollars extra to spend on new and current initiatives as he seeks re-election within the fall. He plans additional spending to deal with the ongoing drought, to help more ladies get abortions in California and to offset rising costs of food, fuel and different goods attributable to inflation.

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

Newsom stated certainly one of his top funds priorities is providing Californians relief from inflation.

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

He’s proposed giving $400 checks to registered car homeowners within the state, with up to two checks per person. That might value the state about $11.5 billion, he stated. Although the money would solely go to automotive owners, Newsom mentioned it should be considered “inflation refund and reduction.”

“For you, it may very well be a rebate to deal with the difficulty of groceries, it could possibly be a rebate to handle the opposite value burdens which are placed on you,” he mentioned.

Democratic lawmakers, though, have a unique thought on the way to provide relief. They need to give $200 checks solely to those beneath a certain earnings level.

Republicans, meanwhile, say reasonably than a check Newsom ought to droop the state’s highest-in-the nation gas tax for one 12 months. They’ve additionally asked him to increase a tax credit score for renters and provide new tax credits to students.

“Senate Republicans imagine there is a higher solution to put money into the state,” mentioned Sen. Rosilicie Ochoa Bogh of Yucaipa.