California Gov. Newsom unveils historic $97.5 billion finances surplus

SACRAMENTO, Calif. — California is coming into the following finances year with a record-smashing surplus of almost $100 billion, Gov. Gavin Newsom stated Friday.

Newsom unveiled a revised price range plan of simply over $300 billion for the next fiscal 12 months, the very best 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 present initiatives as he seeks re-election within the fall. He plans further spending to sort out the ongoing drought, to help extra girls get abortions in California and to offset rising costs of food, fuel and different items attributable to inflation.

He’ll have to reach 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 effect July 1.

Newsom stated one in every of his high 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 car house owners within the state, with up to two checks per particular person. That will price the state about $11.5 billion, he said. Though the cash would solely go to car homeowners, Newsom mentioned it must be considered “inflation refund and relief.”

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

Democratic lawmakers, although, have a unique concept on how to provide aid. They need to give $200 checks solely to those beneath a sure earnings level.

Republicans, in the meantime, say reasonably than a test Newsom should suspend the state’s highest-in-the nation gasoline tax for one 12 months. They’ve additionally requested him to extend a tax credit for renters and provide new tax credit to college students.

“Senate Republicans consider there's a higher approach to invest in the state,” said Sen. Rosilicie Ochoa Bogh of Yucaipa.