California Gov. Newsom unveils historic $97.5 billion funds surplus

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

Newsom unveiled a revised budget plan of simply over $300 billion for the following fiscal yr, the best in state history and fueled by surging tax revenues. The state has collected $55 billion extra in taxes than officials expected in January, leaving it with an estimated $97.5 billion surplus.

That means Newsom, a Democrat, has tens of billions of dollars extra to spend on new and current initiatives as he seeks re-election within the fall. He plans further spending to tackle the continuing drought, to help more girls get abortions in California and to offset rising costs of meals, fuel and other items on account of inflation.

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

Newsom said one in every of his high finances priorities is offering Californians reduction from inflation.

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

He’s proposed giving $400 checks to registered automotive homeowners in the state, with up to two checks per individual. That would cost the state about $11.5 billion, he said. Though the money would solely go to automobile house owners, Newsom mentioned it should be thought of “inflation refund and relief.”

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

Democratic lawmakers, though, have a special concept on the way to provide aid. They wish to give $200 checks only to these under a sure earnings stage.

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

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