California Gov. Newsom unveils historic $97.5 billion budget surplus

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

Newsom unveiled a revised funds 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 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 current initiatives as he seeks re-election within the fall. He plans additional spending to deal with the continuing drought, to help more girls get abortions in California and to offset rising prices of food, gasoline and different goods resulting from 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 finances, which takes effect July 1.

Newsom said one of his high price range priorities is providing Californians relief from inflation.

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

He’s proposed giving $400 checks to registered car house owners within the state, with as much as two checks per particular person. That would price the state about $11.5 billion, he said. Though the money would solely go to car homeowners, Newsom said it should be thought of “inflation refund and reduction.”

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

Democratic lawmakers, though, have a special concept on the best way to present aid. They wish to give $200 checks only to those under a sure earnings level.

Republicans, in the meantime, say reasonably than a examine Newsom should suspend the state’s highest-in-the nation gasoline tax for one yr. They’ve also requested him to extend a tax credit for renters and provide new tax credits to college students.

“Senate Republicans consider there's a better method to spend money on the state,” stated Sen. Rosilicie Ochoa Bogh of Yucaipa.