California Gov. Newsom unveils historic $97.5 billion finances surplus

SACRAMENTO, Calif. — California is getting into the next price range year with a record-smashing surplus of almost $100 billion, Gov. Gavin Newsom mentioned Friday.

Newsom unveiled a revised budget plan of just over $300 billion for the next fiscal 12 months, the 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 existing initiatives as he seeks re-election within the fall. He plans further spending to deal with the continuing drought, to help extra ladies get abortions in California and to offset rising costs of meals, fuel and different items due to inflation.

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

Newsom mentioned considered one of his high budget priorities is providing Californians relief from inflation.

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

He’s proposed giving $400 checks to registered car homeowners within the state, with up to two checks per particular person. That might cost the state about $11.5 billion, he said. Although the cash would only go to automobile owners, Newsom mentioned it must be thought-about “inflation refund and relief.”

“For you, it might be a rebate to handle the problem of groceries, it could possibly be a rebate to address the opposite value burdens which might be placed on you,” he mentioned.

Democratic lawmakers, although, have a unique idea on methods to provide aid. They wish to give $200 checks solely to those under a certain revenue level.

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

“Senate Republicans believe there's a better method to put money into the state,” mentioned Sen. Rosilicie Ochoa Bogh of Yucaipa.