California Gov. Newsom unveils historic $97.5 billion funds surplus

SACRAMENTO, Calif. — California is getting into the subsequent finances yr with a record-smashing surplus of almost $100 billion, Gov. Gavin Newsom said Friday.

Newsom unveiled a revised price range plan of just over $300 billion for the next fiscal 12 months, the very best 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.

That means Newsom, a Democrat, has tens of billions of dollars more to spend on new and existing initiatives as he seeks re-election in the fall. He plans extra spending to deal with the continuing drought, to assist more ladies get abortions in California and to offset rising prices of meals, gas and different goods resulting from inflation.

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

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

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

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

“For you, it may very well be a rebate to address the difficulty of groceries, it might be a rebate to address the opposite value burdens which are placed on you,” he said.

Democratic lawmakers, though, have a distinct idea on learn how to provide aid. They wish to give $200 checks solely to these below a certain income level.

Republicans, in the meantime, say reasonably than a verify Newsom should droop the state’s highest-in-the nation fuel tax for one yr. They’ve additionally requested him to extend a tax credit for renters and supply new tax credit to students.

“Senate Republicans believe there's a better solution to spend money on the state,” said Sen. Rosilicie Ochoa Bogh of Yucaipa.