California Gov. Newsom unveils historic $97.5 billion funds surplus

SACRAMENTO, Calif. — California is entering the next finances year with a record-smashing surplus of practically $100 billion, Gov. Gavin Newsom stated Friday.

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

Which means Newsom, a Democrat, has tens of billions of dollars extra to spend on new and existing initiatives as he seeks re-election in the fall. He plans extra spending to sort out the continuing drought, to assist extra girls get abortions in California and to offset rising costs of food, gas and other goods because of inflation.

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

Newsom stated one of his high budget priorities is offering Californians reduction from inflation.

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

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

“For you, it could be a rebate to address the problem of groceries, it could be a rebate to deal with the other price burdens which are placed on you,” he said.

Democratic lawmakers, though, have a distinct concept on methods to present reduction. They need to give $200 checks only to these below a sure revenue stage.

Republicans, in the meantime, say rather than a check Newsom should suspend the state’s highest-in-the nation fuel tax for one yr. They’ve additionally requested him to increase a tax credit for renters and provide new tax credits to students.

“Senate Republicans believe there is a higher option to spend money on the state,” said Sen. Rosilicie Ochoa Bogh of Yucaipa.