California Gov. Newsom unveils historic $97.5 billion finances surplus

SACRAMENTO, Calif. — California is getting into the subsequent funds 12 months with a record-smashing surplus of practically $100 billion, Gov. Gavin Newsom said Friday.

Newsom unveiled a revised price range plan of just over $300 billion for the subsequent fiscal yr, the best in state historical past and fueled by surging tax revenues. The state has collected $55 billion extra in taxes than officials expected in January, leaving it with an estimated $97.5 billion surplus.

Meaning 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 additional spending to sort out the continued drought, to assist extra ladies get abortions in California and to offset rising costs of food, fuel and different items attributable to inflation.

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

Newsom mentioned one in all his high budget priorities is providing Californians reduction from inflation.

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

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

“For you, it could possibly be a rebate to address the problem of groceries, it may very well be a rebate to handle the other value burdens which might be placed on you,” he stated.

Democratic lawmakers, though, have a different concept on how you can provide reduction. They need to give $200 checks solely to these under a sure earnings level.

Republicans, meanwhile, say rather than a check Newsom should droop the state’s highest-in-the nation gasoline tax for one yr. They’ve additionally asked him to extend a tax credit score for renters and provide new tax credits to students.

“Senate Republicans imagine there's a higher method to invest in the state,” mentioned Sen. Rosilicie Ochoa Bogh of Yucaipa.