California Gov. Newsom unveils historic $97.5 billion price range surplus

SACRAMENTO, Calif. — California is coming into the following finances 12 months with a record-smashing surplus of practically $100 billion, Gov. Gavin Newsom said Friday.

Newsom unveiled a revised funds plan of simply over $300 billion for the following fiscal year, the best in state history and fueled by surging tax revenues. The state has collected $55 billion more 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 present initiatives as he seeks re-election within the fall. He plans further spending to deal with the continuing drought, to assist extra ladies get abortions in California and to offset rising prices of food, fuel and different items attributable to inflation.

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

Newsom mentioned certainly one of his high budget priorities is providing Californians relief from inflation.

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

He’s proposed giving $400 checks to registered automotive owners within the state, with up to two checks per particular person. That would value the state about $11.5 billion, he stated. Though the cash would solely go to automotive house owners, Newsom mentioned it ought to be considered “inflation refund and aid.”

“For you, it might be a rebate to deal with the problem of groceries, it may very well be a rebate to handle the opposite cost burdens which might be positioned on you,” he stated.

Democratic lawmakers, although, have a special idea on how one can present aid. They wish to give $200 checks solely to these below a certain earnings stage.

Republicans, in the meantime, say relatively than a verify Newsom should droop the state’s highest-in-the nation fuel tax for one yr. They’ve also requested him to extend a tax credit for renters and supply new tax credits to college students.

“Senate Republicans believe there's a better solution to invest in the state,” mentioned Sen. Rosilicie Ochoa Bogh of Yucaipa.