California Gov. Newsom unveils historic $97.5 billion budget surplus

SACRAMENTO, Calif. — California is entering the subsequent price range year with a record-smashing surplus of nearly $100 billion, Gov. Gavin Newsom stated Friday.

Newsom unveiled a revised budget plan of just 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 more in taxes than officers 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 within the fall. He plans additional spending to deal with the ongoing drought, to help extra girls get abortions in California and to offset rising costs of meals, fuel and other items as a result of inflation.

He’ll have to achieve settlement with the Democratic-led legislature on all of his proposals. They have till the end of June to finalize the price range, which takes impact July 1.

Newsom stated one of his high funds priorities is providing Californians aid from inflation.

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

He’s proposed giving $400 checks to registered automobile house owners within the state, with up to two checks per individual. That would value the state about $11.5 billion, he said. Although the cash would only go to car house owners, Newsom mentioned it ought to be thought-about “inflation refund and relief.”

“For you, it may very well be a rebate to deal with the issue of groceries, it could be a rebate to address the other price burdens which can be positioned on you,” he stated.

Democratic lawmakers, though, have a unique concept on provide reduction. They want to give $200 checks only to these under a sure income stage.

Republicans, in the meantime, say reasonably than a verify Newsom should droop the state’s highest-in-the nation gasoline tax for one year. They’ve also requested him to increase a tax credit score for renters and offer new tax credit to college students.

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