California Gov. Newsom unveils historic $97.5 billion finances surplus

SACRAMENTO, Calif. — California is getting into the following budget 12 months with a record-smashing surplus of nearly $100 billion, Gov. Gavin Newsom mentioned Friday.

Newsom unveiled a revised price range plan of just over $300 billion for the subsequent fiscal yr, the very best in state history 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 present initiatives as he seeks re-election in the fall. He plans additional spending to sort out the ongoing drought, to help more girls get abortions in California and to offset rising prices of food, gasoline and other goods attributable to inflation.

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

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

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

He’s proposed giving $400 checks to registered automotive house owners within the state, with as much as two checks per particular person. That would value the state about $11.5 billion, he mentioned. Although the money would solely go to automotive owners, Newsom said it ought to be thought of “inflation refund and aid.”

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

Democratic lawmakers, although, have a different thought on tips on how to provide relief. They want to give $200 checks solely to those beneath a certain income level.

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

“Senate Republicans consider there is a higher technique to spend money on the state,” mentioned Sen. Rosilicie Ochoa Bogh of Yucaipa.