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

SACRAMENTO, Calif. — California is entering the subsequent finances 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 next fiscal yr, the highest in state historical past 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.

Meaning 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 extra spending to tackle the continued drought, to assist extra women get abortions in California and to offset rising prices of food, gas and other goods on account of inflation.

He’ll have to succeed in settlement with the Democratic-led legislature on all of his proposals. They've till the tip of June to finalize the finances, which takes effect July 1.

Newsom stated one among his high budget priorities is offering Californians aid from inflation.

“Individuals are feeling deep stress, deep nervousness,” he mentioned.

He’s proposed giving $400 checks to registered car house owners in the state, with up to two checks per individual. That will value the state about $11.5 billion, he said. Although the cash would solely go to automobile house owners, Newsom stated it needs to be thought-about “inflation refund and aid.”

“For you, it could possibly be a rebate to deal with the issue of groceries, it might be a rebate to address the other cost burdens which might be positioned on you,” he mentioned.

Democratic lawmakers, although, have a distinct concept on how one can provide relief. They want to give $200 checks solely to those beneath a certain earnings degree.

Republicans, in the meantime, say somewhat than a verify Newsom ought to 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 credits to students.

“Senate Republicans believe there's a higher technique to put money into the state,” said Sen. Rosilicie Ochoa Bogh of Yucaipa.