California Gov. Newsom unveils historic $97.5 billion finances surplus

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

Newsom unveiled a revised finances plan of just over $300 billion for the next fiscal 12 months, the best in state history and fueled by surging tax revenues. The state has collected $55 billion extra in taxes than officers expected 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 existing initiatives as he seeks re-election in the fall. He plans additional spending to tackle the continuing drought, to assist more ladies get abortions in California and to offset rising prices of food, gas 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 until the top of June to finalize the funds, which takes effect July 1.

Newsom mentioned one in every of his high budget priorities is offering Californians reduction from inflation.

“People are feeling deep stress, deep anxiety,” he mentioned.

He’s proposed giving $400 checks to registered car owners in the state, with as much as two checks per person. That might cost the state about $11.5 billion, he said. Though the money would solely go to automobile owners, Newsom mentioned it ought to be thought of “inflation refund and aid.”

“For you, it could possibly be a rebate to deal with the problem of groceries, it could possibly be a rebate to handle the opposite cost burdens which can be positioned on you,” he mentioned.

Democratic lawmakers, though, have a unique concept on the way to present aid. They want to give $200 checks only to those below a certain revenue degree.

Republicans, in the meantime, say moderately than a examine Newsom ought to droop the state’s highest-in-the nation fuel tax for one year. They’ve also asked him to increase a tax credit for renters and provide new tax credit to students.

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