California Gov. Newsom unveils historic $97.5 billion funds surplus

SACRAMENTO, Calif. — California is coming into the subsequent funds year 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 following fiscal year, the best in state historical past and fueled by surging tax revenues. The state has collected $55 billion more 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 extra to spend on new and current initiatives as he seeks re-election in the fall. He plans extra spending to deal with the continued drought, to help extra ladies get abortions in California and to offset rising prices of meals, gas and different items attributable to inflation.

He’ll have to achieve agreement with the Democratic-led legislature on all of his proposals. They've until the top of June to finalize the finances, which takes effect July 1.

Newsom stated one among his prime budget priorities is offering Californians reduction from inflation.

“Individuals are feeling deep stress, deep anxiousness,” he mentioned.

He’s proposed giving $400 checks to registered automotive owners within the state, with up to two checks per particular person. That might cost the state about $11.5 billion, he said. Although the money would solely go to car owners, Newsom mentioned it needs to be thought-about “inflation refund and reduction.”

“For you, it might be a rebate to handle the problem of groceries, it could possibly be a rebate to address the opposite price burdens that are positioned on you,” he stated.

Democratic lawmakers, although, have a different thought on the best way to present relief. They want to give $200 checks solely to those below a certain income level.

Republicans, in the meantime, say fairly than a verify Newsom ought to droop the state’s highest-in-the nation fuel tax for one 12 months. They’ve additionally asked him to increase a tax credit for renters and provide new tax credit to college students.

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