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

SACRAMENTO, Calif. — California is getting into the next budget yr with a record-smashing surplus of nearly $100 billion, Gov. Gavin Newsom said Friday.

Newsom unveiled a revised budget plan of simply over $300 billion for the following fiscal year, the best in state history and fueled by surging tax revenues. The state has collected $55 billion extra 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 in the fall. He plans further spending to deal with the continued drought, to assist more girls get abortions in California and to offset rising costs of food, gasoline and different goods attributable to inflation.

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

Newsom said one in every of his top budget priorities is providing Californians reduction from inflation.

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

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

“For you, it may very well be a rebate to handle the difficulty of groceries, it might be a rebate to address the opposite value burdens which are placed on you,” he said.

Democratic lawmakers, though, have a distinct idea on how you can present reduction. They wish to give $200 checks solely to those below a sure earnings degree.

Republicans, meanwhile, say quite than a check Newsom ought to droop the state’s highest-in-the nation fuel tax for one year. They’ve also requested him to increase a tax credit score for renters and provide new tax credit to students.

“Senate Republicans believe there's a better option to invest in the state,” said Sen. Rosilicie Ochoa Bogh of Yucaipa.