California Gov. Newsom unveils historic $97.5 billion funds surplus

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

Newsom unveiled a revised funds plan of just over $300 billion for the next fiscal year, the highest 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.

That 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 additional spending to deal with the continuing drought, to help extra women get abortions in California and to offset rising costs of meals, gasoline and other goods because of inflation.

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

Newsom mentioned one in all his top finances priorities is offering Californians aid from inflation.

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

He’s proposed giving $400 checks to registered automobile owners within the state, with up to two checks per individual. That would price the state about $11.5 billion, he mentioned. Though the money would solely go to automobile owners, Newsom stated it ought to be thought-about “inflation refund and reduction.”

“For you, it could be a rebate to handle the difficulty of groceries, it might be a rebate to handle the other price burdens which can be placed on you,” he said.

Democratic lawmakers, although, have a distinct concept on how one can present aid. They want to give $200 checks solely to those under a sure earnings stage.

Republicans, meanwhile, say quite than a examine Newsom should suspend the state’s highest-in-the nation fuel tax for one year. They’ve also requested him to extend a tax credit for renters and provide new tax credits to college students.

“Senate Republicans consider there is a higher solution to invest in the state,” stated Sen. Rosilicie Ochoa Bogh of Yucaipa.