California Gov. Newsom unveils historic $97.5 billion finances surplus

SACRAMENTO, Calif. — California is entering the subsequent finances 12 months with a record-smashing surplus of almost $100 billion, Gov. Gavin Newsom mentioned Friday.

Newsom unveiled a revised finances plan of just over $300 billion for the next fiscal 12 months, the highest in state history 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.

Which means Newsom, a Democrat, has tens of billions of dollars extra to spend on new and present initiatives as he seeks re-election within the fall. He plans additional spending to deal with the ongoing drought, to assist more ladies get abortions in California and to offset rising costs of food, gas and other items attributable to inflation.

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

Newsom stated one among his prime budget priorities is offering Californians relief from inflation.

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

He’s proposed giving $400 checks to registered automobile owners within the state, with as much as two checks per particular person. That might value the state about $11.5 billion, he mentioned. Though the money would only go to car owners, Newsom said it should be considered “inflation refund and relief.”

“For you, it might be a rebate to handle the problem of groceries, it could be a rebate to handle the other value burdens which are positioned on you,” he mentioned.

Democratic lawmakers, although, have a special thought on present relief. They wish to give $200 checks solely to these under a sure earnings level.

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

“Senate Republicans consider there is a higher option to invest in the state,” said Sen. Rosilicie Ochoa Bogh of Yucaipa.