California Gov. Newsom unveils historic $97.5 billion budget surplus

SACRAMENTO, Calif. — California is coming into the subsequent budget 12 months with a record-smashing surplus of almost $100 billion, Gov. Gavin Newsom mentioned Friday.

Newsom unveiled a revised budget plan of simply over $300 billion for the following fiscal year, the highest in state history 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.

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 extra spending to sort out the continuing drought, to help more women get abortions in California and to offset rising prices of meals, gasoline and other items attributable to inflation.

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

Newsom stated one among his high funds priorities is providing Californians relief from inflation.

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

He’s proposed giving $400 checks to registered automotive house owners in the state, with up to two checks per particular person. That might price the state about $11.5 billion, he said. Though the cash would solely go to automotive homeowners, Newsom stated it needs to be thought of “inflation refund and aid.”

“For you, it may very well be a rebate to deal with the difficulty of groceries, it could be a rebate to handle the other cost burdens which are positioned on you,” he mentioned.

Democratic lawmakers, although, have a distinct idea on easy methods to provide reduction. They need to give $200 checks solely to these under a sure income degree.

Republicans, in the meantime, say reasonably than a test Newsom ought to suspend the state’s highest-in-the nation gas tax for one 12 months. They’ve also asked him to increase a tax credit score for renters and provide new tax credits to students.

“Senate Republicans consider there is a higher solution to spend money on the state,” mentioned Sen. Rosilicie Ochoa Bogh of Yucaipa.