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

SACRAMENTO, Calif. — California is entering the subsequent funds yr with a record-smashing surplus of nearly $100 billion, Gov. Gavin Newsom stated Friday.

Newsom unveiled a revised funds plan of just over $300 billion for the subsequent fiscal year, the very best in state historical past and fueled by surging tax revenues. The state has collected $55 billion more 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 more to spend on new and current initiatives as he seeks re-election in the fall. He plans extra spending to tackle the continuing drought, to assist extra girls get abortions in California and to offset rising costs of food, gas and different items attributable to inflation.

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

Newsom said one among his high price range priorities is offering Californians relief from inflation.

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

He’s proposed giving $400 checks to registered automotive homeowners within the state, with as much as two checks per person. That might price the state about $11.5 billion, he mentioned. Though the cash would only go to automobile house owners, Newsom said it needs to be thought-about “inflation refund and reduction.”

“For you, it could be a rebate to deal with the problem of groceries, it could be a rebate to address the other cost burdens which might be placed on you,” he said.

Democratic lawmakers, though, have a special idea on the right way to present aid. They wish to give $200 checks solely to those under a certain earnings stage.

Republicans, in the meantime, say moderately than a check 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 score for renters and supply new tax credit to students.

“Senate Republicans consider there's a better strategy to spend money on the state,” mentioned Sen. Rosilicie Ochoa Bogh of Yucaipa.