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

SACRAMENTO, Calif. — California is getting into the subsequent finances yr with a record-smashing surplus of nearly $100 billion, Gov. Gavin Newsom mentioned Friday.

Newsom unveiled a revised price range plan of just 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 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 in the fall. He plans extra spending to tackle the continuing drought, to help extra ladies get abortions in California and to offset rising prices of meals, gasoline and different items 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 tip of June to finalize the budget, which takes effect July 1.

Newsom said one of his prime finances priorities is offering Californians reduction from inflation.

“People are feeling deep stress, deep anxiousness,” he said.

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

“For you, it could be a rebate to handle the problem of groceries, it may very well be a rebate to handle the other value burdens that are placed on you,” he mentioned.

Democratic lawmakers, although, have a special thought on learn how to provide reduction. They want to give $200 checks only to those beneath a certain revenue stage.

Republicans, meanwhile, say fairly than a examine Newsom should suspend the state’s highest-in-the nation fuel tax for one yr. They’ve additionally asked him to extend a tax credit score for renters and provide new tax credits to students.

“Senate Republicans believe there's a higher approach to spend money on the state,” stated Sen. Rosilicie Ochoa Bogh of Yucaipa.