California Gov. Newsom unveils historic $97.5 billion finances surplus

SACRAMENTO, Calif. — California is getting into the subsequent funds yr with a record-smashing surplus of nearly $100 billion, Gov. Gavin Newsom said Friday.

Newsom unveiled a revised funds plan of just over $300 billion for the subsequent fiscal yr, the highest in state historical past 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 more to spend on new and existing initiatives as he seeks re-election within the fall. He plans further spending to deal with the ongoing drought, to assist extra women get abortions in California and to offset rising costs of meals, gasoline and different goods as a result of inflation.

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

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

“Individuals are feeling deep stress, deep anxiety,” he said.

He’s proposed giving $400 checks to registered automobile owners in the state, with as much as two checks per particular person. That may cost the state about $11.5 billion, he said. Though the cash would solely go to automotive homeowners, Newsom said it ought to be considered “inflation refund and relief.”

“For you, it could possibly be a rebate to handle the issue of groceries, it could possibly be a rebate to handle the opposite price burdens which are positioned on you,” he mentioned.

Democratic lawmakers, though, have a different concept on the way to provide aid. They need to give $200 checks only to these below a certain income level.

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

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