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

SACRAMENTO, Calif. — California is entering the following funds year with a record-smashing surplus of almost $100 billion, Gov. Gavin Newsom said Friday.

Newsom unveiled a revised budget plan of just over $300 billion for the following fiscal year, the best in state history and fueled by surging tax revenues. The state has collected $55 billion more in taxes than officers anticipated 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 present initiatives as he seeks re-election within the fall. He plans extra spending to deal with the continued drought, to assist more girls get abortions in California and to offset rising costs of food, fuel and different items due to inflation.

He’ll have to reach agreement with the Democratic-led legislature on all of his proposals. They have till the end of June to finalize the funds, which takes effect July 1.

Newsom mentioned one in every of his top funds priorities is offering Californians relief from inflation.

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

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

“For you, it may very well be a rebate to handle the difficulty of groceries, it may very well be a rebate to handle the other price burdens which might be positioned on you,” he said.

Democratic lawmakers, though, have a distinct idea on find out how to present relief. They want to give $200 checks solely to those under a sure revenue degree.

Republicans, in the meantime, say relatively than a test Newsom should suspend the state’s highest-in-the nation gas tax for one yr. They’ve additionally requested him to extend a tax credit score for renters and offer new tax credit to students.

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