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

SACRAMENTO, Calif. — California is entering the next price range 12 months with a record-smashing surplus of nearly $100 billion, Gov. Gavin Newsom said Friday.

Newsom unveiled a revised price range plan of just over $300 billion for the following fiscal yr, the best in state historical past and fueled by surging tax revenues. The state has collected $55 billion more 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 extra to spend on new and existing initiatives as he seeks re-election in the fall. He plans additional spending to deal with the ongoing drought, to help more ladies get abortions in California and to offset rising prices of meals, gas and other goods due to inflation.

He’ll have to reach settlement with the Democratic-led legislature on all of his proposals. They've till the top of June to finalize the finances, which takes effect July 1.

Newsom said one in every of his high price range priorities is offering Californians aid from inflation.

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

He’s proposed giving $400 checks to registered car owners within the state, with as much as two checks per person. That may value the state about $11.5 billion, he stated. Though the cash would solely go to car owners, Newsom mentioned it should be thought of “inflation refund and reduction.”

“For you, it might be a rebate to deal with the problem of groceries, it could possibly be a rebate to deal with the opposite price burdens that are placed on you,” he mentioned.

Democratic lawmakers, although, have a distinct thought on methods to provide reduction. They need to give $200 checks solely to these under a certain income level.

Republicans, in the meantime, say slightly than a verify Newsom ought to suspend the state’s highest-in-the nation gasoline tax for one yr. They’ve additionally requested him to extend a tax credit for renters and provide new tax credits to college students.

“Senate Republicans imagine there is a better method to spend money on the state,” said Sen. Rosilicie Ochoa Bogh of Yucaipa.