California Gov. Newsom unveils historic $97.5 billion budget surplus

SACRAMENTO, Calif. — California is getting into the following price range yr with a record-smashing surplus of practically $100 billion, Gov. Gavin Newsom mentioned Friday.

Newsom unveiled a revised price range plan of simply over $300 billion for the next fiscal yr, 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.

Which means Newsom, a Democrat, has tens of billions of dollars extra to spend on new and existing initiatives as he seeks re-election within the fall. He plans additional spending to sort out the continuing drought, to help extra girls get abortions in California and to offset rising costs of meals, gasoline and other items due to inflation.

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

Newsom said one in all his top price range priorities is offering Californians relief from inflation.

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

He’s proposed giving $400 checks to registered car homeowners within the state, with as much as two checks per person. That would value the state about $11.5 billion, he stated. Although the cash would solely go to car owners, Newsom stated it must be thought-about “inflation refund and aid.”

“For you, it might be a rebate to address the issue of groceries, it might be a rebate to handle the other cost burdens that are placed on you,” he mentioned.

Democratic lawmakers, although, have a different thought on the best way to provide reduction. They want to give $200 checks only to these under a sure earnings level.

Republicans, in the meantime, say quite than a test Newsom ought to droop the state’s highest-in-the nation fuel tax for one yr. They’ve additionally asked him to extend a tax credit for renters and offer new tax credit to students.

“Senate Republicans believe there is a better way to put money into the state,” stated Sen. Rosilicie Ochoa Bogh of Yucaipa.