California Gov. Newsom unveils historic $97.5 billion finances surplus

SACRAMENTO, Calif. — California is coming into the subsequent price range 12 months with a record-smashing surplus of nearly $100 billion, Gov. Gavin Newsom mentioned Friday.

Newsom unveiled a revised price range plan of simply over $300 billion for the following fiscal 12 months, the best in state historical past and fueled by surging tax revenues. The state has collected $55 billion more in taxes than officials anticipated 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 current initiatives as he seeks re-election within the fall. He plans further spending to tackle the continuing drought, to help more women get abortions in California and to offset rising prices of meals, gasoline and other items because of 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 finances, which takes effect July 1.

Newsom stated one in every of his top finances priorities is offering Californians relief from inflation.

“Persons are feeling deep stress, deep anxiety,” he said.

He’s proposed giving $400 checks to registered automotive homeowners within the state, with as much as two checks per particular person. That may value the state about $11.5 billion, he stated. Though the cash would only go to automobile owners, Newsom mentioned it must be thought-about “inflation refund and aid.”

“For you, it may very well be a rebate to handle the issue of groceries, it could possibly be a rebate to handle the opposite price burdens which can be positioned on you,” he stated.

Democratic lawmakers, although, have a distinct concept on find out how to present relief. They wish to give $200 checks solely to those beneath a certain revenue stage.

Republicans, meanwhile, say relatively than a verify Newsom should suspend the state’s highest-in-the nation fuel tax for one yr. They’ve additionally requested him to extend a tax credit for renters and supply new tax credits to college students.

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